Alice in POGOland

It bears pointing out that (1) there were no POGOs before Duterte’s term, and (2) there seem to be no POGOs in Mindanao, bakit kaya.

The Philippine Amusement and Gaming Corp. (PAGCOR) started processing licenses for POGOs to shore up its revenue stream in September 2016. Philippine offshore gaming operators began their operations in November 2016.

NCR hosts a large number of POGOs in cities such as Makati, Pasay, Manila, Las Piñas, Mandaluyong, Parañaque, and Quezon City.

Also, regions outside Metro Manila cater to POGOs, including Regions III, IV-A, and VII.

FAST FORWARD to 2020. At a Senate hearing, the Anti-Money Laundering Council (AMLC) bared its records of POGO transactions from 2017 to 2019.

… based on our records, the total flow of funds is approximately PhP54 billion only, combining inflows and outflows. If we deduct outflows from inflows, the net inflow is only approximately PhP7 billion. Comparing this to our PhP18.6 trillion economy, the PhP54 billion represents only 0.29%, and if we use the net inflow of PhP7 billion, this represents only 0.04% of the economy.

Also, that P14 billion of the P54 billion was linked to “suspicious activities”:

…about P138 million in Pogo transactions were linked to drug trafficking.

The other “suspicious” amounts were related to violations of the electronic commerce law (P4.9 billion), lack of legal or trade obligations (P4 billion), deviations from clients’ profiles (P2.4 billion), funds not commensurate to the business or personal capacity of a client (P2.2 billion), lack of proper identification of a client (P231 million), and fraud (P121 million).

FAST FORWARD to 2024 and the very curious case of Alice Guo, a very wealthy smalltown mayor with direct links to China and suspected of involvement in money laundering and other criminal POGO operations. She denies it all, of course, and insists she’s legit, a Filipino citizen who grew up on a farm altho she doesn’t remember or know much of her family or childhood or schooling, leading many to think her documents are fake and she’s an illegal Chinese migrant if not a spy.

Read “Bamban’s Mysterious Mayor” by John Berthelsen of Asia Sentinel.

… the reason for the mystery may lie in a raid by authorities on property that she was linked to – Hongsheng Gaming Technology Incorporated and Zun Yuan Technology Incorporated. Hongsheng was raided in February 2023 and was replaced by Zun Yuan in the same location. It was then again raided in March 2024 for charges of alleged human trafficking and serious illegal detention. In them, police found a vast online casino, called a Philippine Offshore Gambling Operator, or POGO, which catered to online gamblers in China, and rescued nearly 700 workers, including 202 Chinese nationals and 73 other foreigners who were forced to pose as online lovers.

Similar facilities have been found in Cambodia and Myanmar, estimated to employ as many as 75,000 to 250,000 people, many against their will, and run by organized crime figures, mostly Chinese. They have increasingly been chased out of Cambodia and the border regions between China and Myanmar as Chinese Supreme Leader Xi Jinping, angered by the lawlessness, exploitation, and damage to China’s reputation, has ordered them closed.

In Alice Guo’s case, there is a more disturbing concern. Two of the incorporators of Guo’s company Baofu Land Development, the compound where the Pogo firms were located, are Chinese national Zhang Ruijin, who was convicted in April for money laundering in Singapore, and Lin Baoying, who carries a Dominican passport and is also facing charges in Singapore. Guo is also listed as an incorporator in the company, along with Filipino national Rachel Joan Malonzo Carreon and Cypriot national Zhiyang Huang.

… Guo denied knowing about her partners’ background, telling lawmakers today (May 22) that she had only learned about their criminal records through social media posts by a lawmaker the day before by checking them out on the Internet.

Although Guo was found to have owned half of the land under the POGO, housed in long rows of buildings just behind her office, she told lawmakers she sold the property, which according to videos on local TV contained a grocery, warehouse, swimming pool, and even a wine cellar. As with the property, Guo says she sold her helicopter and Ford Expedition registered under her name long ago. She told lawmakers that she was “not a coddler, not a protector of POGOs.” She hasn’t commented on the spying allegations and has largely avoided media interviews since her appearance at the Senate last week and this week.

Read too Manolo Quezon‘s “What’s Guo-ing on”.

For years now I’ve been suggesting that the political interests and thus, activities, of the People’s Republic of China should not be confused with the political and social clout of Pogos who exist in defiance of the Chinese government. The Pogos are, arguably, stronger: Beijing’s requests verging on orders, to Manila, for a crackdown on Pogos never resulted in anything more than cosmetic “busy-busihan” as money talks and Pogos have lavished funds on our upper, middle, and political classes; and since all politics is local, the easygoing spending of Pogos makes them more valuable than presidential patronage or foreign affairs. Investigations so far have been racist in their lazy assumptions and breezy unwillingness to take into account the messy state of the documentation of many Filipinos, the different subgroups among Chinese Filipinos, and differences between Pogos’ and Beijing’s efforts to influence officialdom.

Then again, knowing that China can be quite “devious” (ika nga ni Defense Sec Gibo), it wouldn’t surprise if POGOs turned out to be of a piece with the would-be superpower’s long-term master plan. About time we shut them down.

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