The entry into the Philippines by almost half a million Chinese POGO (Philippine Offshore Gaming Operators) workers,  who have been tagged  in money laundering involving billions of pesos, human trafficking, prostitution and other nefarious activities happened because the Duterte administration  was “too soft on China.”

This, Senator Richard Gordon said, adding that after the Philippines severed  ties with the United States, it pivoted to China and forged bilateral ties with the said country.

“This would never happen if the (Duterte) administration was not too soft on China,” said Gordon who is leading the Senate Blue Ribbon committee hearing on the influx of POGO in the country  and their involvement in several illegal activities.

He said that was the exact reason why the Chinese POGOs are here.

But when asked if the POGO workers were being condoned by the administration, Gordon replied, “Hindi naman (Not really).”

However, he noted there  is some tolerance because they were scared.  He said this  brand of relationship with China could be the reason behind being  apparently hesitant on calling out possible money laundering activities.

“Hindi nila alam may deal ba si Boss  dyan, may deal ba ang Presidente rito? Pinagbibigyan  niya  itong mga ito? Nakakatakot yan eh?” said  Gordon while referring to the concerned government agencies spefically the Anti-Money Laundering Council (ALMC) which failed to act in the alleged money laundering.

“I think there’s a patina of doubt because the President is close to China, there might be secret negotiations on this matter… baka lang mayroon silang usapan na hindi namin nalalaman,” Gordon said.

“Tolerance is tolerance. Take it for what the word means. You don’t order an arrest so there’s tolerance. Customs reported to you and ALMC did not act,” said Gordon.

Gordon also said  there is a failure in the existing foreign policies of the country.  “Yes, and it’s not the fault of the foreign secretary,” he said.

The senator  again expressed disgust over the  money laundering issues arising from the prevalence of POGO.

He said inordinate and suspiciously large amounts of foreign currency of  US$470-million brought in by 47 individuals from September 2019 to February 2020 alone, without being flagged is an apparent scheme of money laundering being tolerated by authorities.

Republic Act No. 10365, or the Anti-Money Laundering Council Act, as amended, requires covered institutions or persons to report to AML Council within five days all covered transactions and AMLC prescribed period for suspicious transactions. POGOs are required to report suspicious transactions to the AMLC to prevent the growing online casino industry, catering mainly to Chinese players, from becoming a conduit for money laundering.

“It appears that the relevant authorities chose to turn a blind eye to the nefarious activities that come with the prevalence of POGO in our country in exchange for a few billions in tax revenues,  or perhaps because of pastillas or any other form it may take,” Gordon said.

“We have a report that one individual was able to bring in huge amounts 45 times. That is what I call done with impunity,” he said.

Gordon warned that money laundering is a threat to national security because it can be used to fund organized crimes, destabilize governments and erode the integrity of the nation’s financial institutions.

“This is very alarming. Hindi natin alam saan talaga galing ang pera at saan dadalhin, ni hindi natin namomonitor kung nasaan ang mga taong ito,” he said.

He said the fund could allow syndicates to thrive and perpetuate criminality, exposes the country to and provides fuel for terrorism drug dealers, terrorists, illegal arms dealers, human traffickers, smugglers, corrupt officials and others to operate and expand their criminal enterprises. In extreme cases, it can be used to fund armies or coup’d’etat that can lead to a take-over of government.

“It is also a threat to our economy because it can cause artificial inflation, often times dirty money is used to purchase real properties which will cause the value or price of these properties to increase by creating the illusion of a demand when there is none,” he said.

“It causes a decrease in productive employment by causing businesses to fail, hence workers lose their jobs,” Gordon also said.

On the other hand, opposition  Senator Risa Hontiveros said President Rodrigo Duterte should speak against the ills brought about by the influx of POGOs. /Stacy Ang