Hontiveros: Pogos used corporate layering to evade audit

HEARING RESUMES | Former presidential spokesperson Harry Roque and former Technology and Livelihood Resource Center Director General Dennis Cunanan are among the resource persons who attended the Senate hearing on Pogo activities on Monday. | Photo by Richard A. Reyes, Philippine Daily Inquirer

MANILA, Philippines — Individuals behind the Philippine offshore gaming operators (Pogos) had put up various companies in the country to evade regulatory audit, Sen. Risa Hontiveros said on Monday, promising to continue investigating serious crimes related to Pogos even after President Ferdinand Marcos Jr. has ordered a ban on them.

At the resumption of the Senate inquiry, Hontiveros pointed out that Lucky South 99 Outsourcing Inc. was first represented by Katherine Cassandra Li Ong when it applied for a permit from the Philippine Amusement and Gaming Corp. (Pagcor) to operate the Pogo hub in Porac, Pampanga province.

She said the 10-hectare compound was owned by Whirlwind Corp., which named one Stephanie Mascareñas as its authorized representative.

READ: Pogo posed as BPO, duped local gov’t — Porac execs

However, the senator noted that Ong would later enter into transactions with Pagcor as an official of Whirlwind, while Ronalyn Baterna replaced her as the representative of Lucky South 99.

“It appears from the documents we have obtained that different companies were established to protect those who are really operating Pogos and those harboring fugitives (connected with Pogos),” Hontiveros said before concluding the five-hour proceedings.

READ: Roque’s bank documents found in raided Pampanga Pogo – PAOCC

“Don’t use corporate layering to avoid scrutiny. This is part of their dirty tactics. Don’t fool this committee because we will not stop holding people to account just because Pogos are now banned,” she warned.

Hontiveros, who initiated the probe as chair of the Senate committee on women, children, family relations and gender equality, said the loopholes in the government’s regulatory system should be addressed to ensure the success of Marcos’ directive to pull the plug on Pogos.

“Honestly, I already want to end this hearing, but we cannot do that until we have completely identified those who should be liable for this heinous (Pogo) activities,” she said. “That would not be justice.”

Material testimony

Testifying at the hearing, Nancy Gamo, Guo’s accountant, maintained that it was the suspended mayor of Bamban, Tarlac province, who hired her to facilitate the registration with the Securities and Exchange Commission (SEC) of two Pogo companies—Hongsheng Gaming Technology Inc. and Zun Yuan Technology Inc.—that authorities raided in her town.

Quizzed by Sen. Sherwin Gatchalian, Gamo said she started working on a “per project basis” for the mayor in 2012 after she retired from her corporate job as an accountant for 27 years.

She said among those she had helped register were the companies owned by Guo and her family, including 3 Lin-Q Farms Inc., QJJ Slaughter House, QJJ Smelting Plant, Q-Seed Genetics Inc., Siopao Bulilits Foods Inc. and West Cars Inc.

Gamo claimed that Guo also asked her to process the SEC registration of Baofu Land Development Inc., which owned the 7.9-hectare property that hosted the 36 multistory buildings that Hongsheng and Zun Yuan had used for their operations.

But Gatchalian pointed out that Guo had previously told the Senate panel that she did not know Gamo.

“She was lying,” Gamo said in response to Gatchalian’s question.

“[Guo] was my client. I directly transacted and spoke with her regarding Hongsheng,” she pointed out.

Asked by Gatchalian if Guo had “active participation” in the operations of Hongsheng and Zun Yuan, she replied: “I think so.”

“I cannot say that she is not involved because the lease contract was (between Hongsheng) and Baofu, whose representative is Alice Guo,” Gamo noted.

Speaking with reporters after the hearing, Gatchalian said Gamo’s testimony only proved that Guo had perjured herself several times when she appeared twice before Hontiveros’ committee.

“What she said before that she has nothing to do with Pogos were all lies because even the names of incorporators of both Zun Yuan and Hongsheng came from her,” the senator said.

“That’s why the testimony of Nancy Gamo was material because we can see [Guo’s] active participation (in Pogos). Even Gamo said [Guo] has been lying,” Gatchalian lamented.

Hontiverous also warned Guo after the suspended mayor skipped the Senate hearing for a third straight time.

“The long arm of the law will soon reach you, Guo Hua Ping,” the senator said, using the mayor’s supposed real identity as a Chinese citizen. (See related story on this page.)“You may be able to hide now, but you will not be able to hide forever,” she added.

Senate President Pro Tempore Jinggoy Estrada pressed the Philippine National Police and the National Bureau of Investigation to help the Office of the Senate Sergeant at Arms in tracking down Guo, who had been ordered arrested for snubbing the Senate inquiry.

“If you cannot arrest her within a month, your proposed budget (for 2025) might be affected,” Estrada said.