LGUs tread carefully on anti-Pagcor bill

CITY OF SAN FERNANDO—Local officials are treading carefully on a proposal to reduce the powers of the government’s lone gaming agency that has funneled tens of millions of pesos in aid to many local government units.

A leader of the League of Cities of the Philippines (LCP) said the group of city mayors would discuss the proposal, contained in a bill filed by Sen. Ralph Recto, that strips the Philippine Amusement and Gaming Corp. (Pagcor) of authority to operate casinos and leaves only its regulatory power intact under an agency with a different name, Philippine Amusement and Gaming Commission.

The earliest that LCP could discuss the bill, according to City of San Fernando Mayor Oscar Rodriguez, would be in July or August when the LCP national executive board meets in Bacolod City.

Rodriguez, also LCP president, said LCP would want to know where President Aquino stands on the bill.

Angeles City Mayor Edgardo Pamintuan expressed reluctance to support the bill because of its impact on local government finances.

Angeles City, which hosts a Pagcor casino, receives at least P30 million a year in aid from the state-run gaming firm.

“If it is going to be operated by a private enterprise, we will demand an increase [in funds that go to local governments],” said Pamintuan, without vouching for the bill.

In a statement, Eastern Samar Rep. Ben Evardone expressed strong objection to the bill, warning of its effects on a $5-billion project to build a Las Vegas-style entertainment complex being put up by Pagcor on reclaimed land in Pasay City.

Evardone said he saw no need to replace Pagcor with a new agency with reduced powers since the current leadership of

Pagcor had been exercising good management practices contrary to the previous leadership of the gaming industry.

Evardone said Pagcor, under its current chair, Cristino Naguiat Jr., had contributed much to the government’s budgetary requirement and helped in the delivery of social services.

“Why kill the goose that lays the golden egg?” said Evardone.

“Pagcor, throughout the years, has been a major source of revenues for the government,” said the congressman.

He said the bill to abolish Pagcor was untimely as the gaming firm is now in the thick of preparations for its Entertainment City project, which is seen to rival casinos in Macao and Singapore.

“The proposal to abolish Pagcor could delay the timetable for the Entertainment City which is scheduled for completion by 2016,” said Evardone.

Aiming for a 10-percent share in the $115-billion global gaming pie, Evardone said the Entertainment City would give the Philippines an additional $11.5 billion in revenues every year.

Citing the experience of Singapore, where tourism income increased by 74 percent from $10.2 billion in 2009 to $17.7 billion in 2011 with the opening of Marina Bay Sands gaming resort in April 2010, Evardone said the Philippines is expected to do better as Tourism Secretary Ramon Jimenez had been quoted earlier as saying that Entertainment City could help the tourism department meet its target of bringing in 10 million tourists every year by 2016.

“We have so much to benefit from this project,” Evardone said.

“So, instead of proposing to abolish

Pagcor, why not a proposal to amend its charter to strengthen it further?” he said.

Reforms initiated by Naguiat and Pagcor’s ever-increasing revenue are “strong arguments against Pagcor’s abolition,” said Evardone. Tonette Orejas, Inquirer Central Luzon