PAGCOR failed to protect POGO workers, senators say
Senators say PAGCOR failed to take action on human trafficking and cryptocurrency scams linked to POGOs.
The Philippines.- Senators have renewed a call for stricter regulations or a potential ban on offshore gambling operations. During a Senate hearing on the rescue of more than 1,000 foreign workers from a complex northwest of Manila, senator Sherwin Gatchalian said POGOs were being used as a “legal cover” by criminal syndicates to promote fake cryptocurrency investments and run illicit operations.
He accused PAGCOR of corruption and failure to effectively monitor the entities and called again for a complete ban on the sector, which he believes has brought “international shame” to the Philippines.
Gatchalian highlighted the prevalence of scams and human trafficking activities associated with POGOs, citing approximately 113 reported crimes linked to the operations between November 2019 and March 2023, including cases of kidnapping and trafficking.
Meanwhile, lawmaker Risa Hontiveros cautioned that ignoring the POGOs business model would lead to the rapid expansion of organised crime groups that the government would struggle to combat.
PAGCOR assistant vice-president Jessa Mariz Fernandez admitted to the oversight, acknowledging that her department had failed to work closely with relevant authorities and send officers to observe POGO hubs.
At its peak, the POGO industry employed over 300,000 Chinese workers. However, the combination of the pandemic, increased taxes, and enforcement actions resulted in many operators relocating their operations. The Chinese government has consistently warned its nationals against working in POGOs in the Philippines, citing criminal activities ranging from kidnapping to murder.
According to South Morning China Post, Senator Hontiveros recently visited the POGO compound where authorities rescued over 1,090 trafficking victims, including Chinese, Filipinos, and Indonesians. The victims were allegedly forced into working as scammers and held captive in squalid conditions. Hontiveros detailed how the victims would manipulate unsuspecting foreigners, typically men, into romantic relationships and coerce them into making cryptocurrency investments.
