Philippines Commission on Audit to examine POGO GGRs

The Commission on Audit (COA) has been granted the authority to scrutinise gross gaming receipts.

The Philippines.- The Department of Justice (DOJ) has reported that the Philippine Commission on Audit (COA) has been authorised to investigate the gross gaming receipts (GGRs) of POGOs while the Philippine Amusement and Gaming Corp. (PAGCOR) seeks a third-party auditor. 

In a legal guidance provided to COA chairman Gamaliel Cordoba, the DOJ said audits of POGO GGRs must be conducted by an independent, reputable, internationally known and duly accredited third-party auditor in accordance with the National Internal Revenue Code. However, in cases where PAGCOR requires COA’s assistance due to violations by the third-party, the state auditor may proceed with the examination while PAGCOR continues its to seek a qualified third-party.

In March, PAGCOR terminated the contract of the third-party auditor responsible for auditing POGOs. The service provider was found to be in default of its obligations and to have committed unlawful acts.

DOJ officer-in-charge Raul Vazquez cited relevant laws, including Republic Acts 11590 (the law on taxing POGOs) and 9184 (the Government Procurement Reform Act), to support PAGCOR’s request for COA’s involvement in the absence of a third-party firm.

Vazquez stressed the importance of auditing POGO GGRs to prevent potential government losses, stating that without proper oversight, POGOs could underreport their earnings, thereby defrauding the government.

Cordoba told The Phil Star that COA has the authority to audit POGO GGRs under Presidential Decree 1445 (the Government Auditing Code of the Philippines) and is qualified to examine GGRs under RA 11590.

See also: Valenzuela city bans POGOs and other gambling activities