Makati declares moratorium on POGO
Given its central location and the availability of leasable office buildings with high speed Internet, Makati is home to as much as 300 POGO service providers that employ thousands of workers, most of whom are Chinese nationals
Amid rising crime and prostitution in the city, Makati Mayor Abby Binay declared over the weekend an indefinite moratorium on the issuance of new business licenses and permits to service providers of Philippine offshore gaming operators (POGO).
The mayor said the city will immediately cease to issue “Letters of No Objection” (LONO) and stop accepting new applications for business permits from POGO service providers. It will also crack down on illegal activities catering to POGO and their employees within Makati.
Binay cited “overheating” in the residential and commercial leasing market, as well as rising criminality and prostitution, as major reasons for the decision not to accept more POGO companies.
The decision to impose a moratorium, the mayor said, is aligned with the thrust of President Rodrigo Duterte and Finance Secretary Carlos Dominguez III to crack the whip against illegal activities related to POGO service providers.
Given its central location and the availability of leasable office buildings with high speed Internet, Makati is home to as much as 300 POGO service providers that employ thousands of workers, most of whom are Chinese nationals.
The influx of thousands of foreign workers employed by POGO increases the demand for housing and workstations, thus causing property rates in the city to spike.
This puts the local property sector at risk of overheating, where its growth becomes unsustainable.
The mayor noted that almost all POGO service providers located in Makati are licensed by the Philippine Amusement and Gaming Corp. and duly registered with the Business Permits and Licensing Office. This has led to the city earning more than P200 million per year in local business taxes from POGO service providers.
Binay said they always welcome legitimate businesses in the city that strictly adhere to all laws and ordinances, particularly the payment of taxes.
She added the city will always strive to provide these businesses and their employees with a safe environment conducive to business growth and personal activities.
However, an increase in illicit activities targeting POGO employees, who are mostly Chinese, has been noted.
At least four illegal POGO service providers, two establishments that were used as prostitution dens, and one unsanitary restaurant and catering company have been closed in the last two months.
Authorities also seized P2.5 billion worth of illegal drugs from an apartment rented by a Chinese national.
The city mayor pointed out that with the high demand for residential units for POGO employees, there was also an increase in illegal apartment rentals.
“These apartments are usually overcrowded, with insufficient exits and faulty fire alarm systems,” she said.
Authorities also seized P2.5 billion worth of illegal drugs from an apartment rented by a Chinese national.