Lawmakers have piled further pressure on the Philippine Amusement and Gaming Corporation by calling for an investigation into gaming contracts signed by the previous management regime.
In recent months, a number of the state-controlled organisation’s former executives have been accused of misusing funds - including spending P1bn on coffee for casino patrons in nine years - which has now called into question how casino licences have been awarded.
PAGCOR was created in the late 1970s in an effort to curb illegal casino activities; within only a few years it was given sole responsibility to regulate, authorise and license games of chance. In 2007, Congress extended its corporate life by a further 25 years and passed a law enabling it to issue licences and enter into agreements with private entities.
In light of recent speculation over the misappropriation of funds, the Philippine Star reports that politicians Rufus and Maximo Rodriguez are urging Congress to investigate PAGCOR’s contract with Genting’s Resorts World casino in Manila.
In resolution 1424 filed by the brothers, the deal between the two companies is described as "very disadvantageous to the government", noting that PAGCOR receives only 25 per cent of the casino’s earnings. In 2010 this amounted to P3bn, compared with the P12bn earned by Resorts World.
They also suggested that the casino was developed too close to other casinos operated by PAGCOR and, as a result, revenues at these properties have suffered.
"There is a need to look into this contract and other PAGCOR contracts entered into by the past administration to determine whether or not the government was prejudiced and, if so, who are to be held accountable and liable for entering into such disadvantageous contracts," the resolution states.
