The raided Philippine offshore gaming operation (POGO) hubs in Bamban in Tarlac and Porac in Pampanga is not unique to the country, but is a part of a network of “scam farms” in Southeast Asia operated by criminal gangs from China.

And the more disturbing fact is the criminal gangs operating the network of scam farms in Southeast Asia may have ties to the government in Beijng, even if Chinese police have participated in crackdowns against the scam farms.

The report titled “Transnational Crime in Southeast Asia: A Growing Threat to Global Peace and Security” by the United States Institute of Peace released in May this year shows how the region has become a host to the scam farms run by Chinese criminal gangs.

“Over the past decade, Southeast Asia has become a major breeding ground for transnational criminal networks emanating predominantly from China. These organizations target millions of victims around the world with illegal and unregulated online gambling and sophisticated scamming operations,” the report said.

It added that at the end of 2023, the “pig butchering” scams operating from Southeast Asia gained around $64 billion for the Chinese criminal groups.

The report also stated that the Chinese criminal groups running the scam farms have a rather complicated relationship with the Chinese government but has managed to maintain close ties with members of the Chinese Communist Party (CCP).

“While Chinese police try to crack down on the networks with campaigns targeting illegal online gambling, fraud, and money laundering in China and elsewhere, the same crime groups maintain close relations with members of the Chinese Communist Party, as well as partnerships with a range of Chinese state actors, including business enterprises, party agencies, and quasi-governmental institutions,” it added.

The report by the United States Institute of Peace said that Myanmar, Cambodia, and Laos form the “epicenter” of the scam farm industry in Southeast Asia. This means that the Philippines is new expansion area for scam farms as evidenced by the surprising mushrooming of the already-closed POGO hubs in Bamban and Porac.

The case of Palau also offers another insight into how the notorious Triad or Chinese mafia has been establishing scam farms on the small island-nation.

TRIAD-LINKED BUSINESS OPERATIONS

An article posted in the website of the Organized Crime and Corruption Reporting Project (OCCRP) https://www.occrp.org/en discussed how Palau has become the latest target for the establishment of scam farms by Chinese criminal syndicates of which some are suspected to have ties with the Triad and Beijng.

“The online gambling operations were in fact the latest step in an attempted push into the Pacific nation of just 18,000 people by a loosely-connected network of Chinese businesspeople, some with ties to Triad crime groups and China’s ruling party, OCCRP has found,” the article titled “Pacific Gambit: Inside the Chinese Communist Party and Triad push into Palau,” said.

It so happens that Palau is a political battleground between Beijing and the West, and China has been making aggressive moves to make the island-nation part of its sphere of influence.

The sad news is there are local politicians in Palau and business groups that have welcomed the Chinese with almost open arms.

“While Palau’s government has remained steadfastly pro-West and pro-Taiwan, a group of business figures has in recent years begun pushing Beijing’s interests in Palau. Some have openly proclaimed they are promoting the CCP’s foreign policy goals, while others have furthered Chinese influence by setting up new business ventures and cultivating close relationships with Palau’s elite,” it added.

What is happening in Palau and the Philippines can be the similar, as it would be impossible for such large-scale illegal POGO operations to thrive in Bamban and Porac without the local and national authorities knowing such, and the local police force willing to turn a blind eye. In fact, the local police force in Porac and the police chief of Bamban were relieved after the two POGO sites were raided by elements of the Presidential Anti-Organized Crime Commission (PAOCC).

The Senate hearings on the illegal POGO operations in the country, with specific focus on Bamban and its embattled Mayor Alice Guo, has also shed light on the possible collusion of local and national government officials on the issue.

Senator Risa Hontiveros also said on July 1 that the Senate is set to hold another inquiry on July 10 following reports on the alleged involvement of a former cabinet official in the issuance of licenses to illegal POGOs.

“We are calling a next hearing and I hope the PAGCOR chief deems it right forum to reveal what he knows. Whoever the ex-cabinet official turns out to be, the fact remains: POGOs are being used as a legal cover for scam hubs,” Hontiveros said, referring to the  Philippine Amusement and Gaming Corporation and its chairman and chief executive officer Alejandro Tengco.

And thankfully, the Senate hearings on illegal POGO operations in the country led by Hontiveros and Senator Sherwin Gatchalian has led to calls to totally ban POGOs in the country.

Meanwhile, the United States Institute of Peace report said that the activities of organized crime thrives in areas where there is a weak governance, which can fuel regional and global instability.

“Organized crime is a significant driver of conflict globally as it preys on weak governance, slack law enforcement, and inadequate regulation. It tears at the fabric of societies by empowering and enriching armed actors and fueling violent conflict. In Asia, criminal groups prop up corrupt and dangerous regimes from Myanmar to North Korea, posing a direct threat to regional stability,” report added.

Read part 1 of this series titled “Chinese vs (Fil) Chinese amid POGO fiasco” at https://filobserver.wpcomstaging.com/2024/06/28/insight-chinese-vs-fil-chinese-amid-pogo-fiasco/

(Photo from Kasperksy website showing a large scam farm in Myanmar)