Senators welcome proposal for PAGCOR privatization
MANILA – Majority of senators have welcomed a proposal to privatize the Philippine Amusement and Gaming Corp. (PAGCOR) following an offer of businessman Ramon Ang to raise as much as $10 billion from Malaysian investors, a report of the Philippine News Agency said.
The lawmakers, however, said the privatization plan of one of the government’s top revenue earners should be studied carefully with the participation of Congress.
Senate president Juan Ponce Enrile favored the privatization plan but the Pagcor charter (Republic Act No. 9487) should be amended first to separate the regulatory and the operation functions of the government-owned corporation.
”I’m in favor but they have to separate the regulatory function because that is a government and the operation must be privatized. It will be more manageable if the government is not involved in the winning or losing in the business,” Enrile said.
Enrile agreed with Ang, vice chairman of the country’s giant food conglomerate San Miguel Corporation, that the privatization of Pagcor could transform the country into a tiger economy.
”You know, that could be a catalyst for tourism. In fact, PAGCOR is a very potent weapon to attract tourism in the country, if we are enlightened enough to use that instrument,” Enrile said.
Like Enrile, both senators Franklin Drilon and Serge Osmeña III as well as Juan Miguel Zubiri said the charter of Pagcor should be change to create a regulatory body and leave or spin off the commercial operations.
“I am in favor of the proposed privatization but after an audit of its assets so we can determine its true market value. This could be done after its charter is amended to retain and redefine its regulatory function and the spin off of its commercial operations,” Osmeña said.
Drilon said the present set up wherein Pagcor serves as both the licensor and operator of casinos is anomalous.
”There is a clear conflict of interests here,” said Drilon, adding that while Congress can amend the current Pagcor Charter, there was no law stopping President Beingo “Noynoy” Aquino II from “adopting a policy that, henceforth, Pagcor should no longer engage in the operations of casinos.”
Drilon, chairman of the Senate committee on finance, said the income generated from the licensing of the casinos “should go directly to the government’s general fund just like ordinary taxes collected.”
“I have no problem with privatizing casino operations provided that these are bided out in an open and transparent manner,” Drilon said.
Senator Loren Legarda also supported the privatization but like fellow lady senator Pia Cayetano, the proposal should be done with careful study so as not to affect specially sectors like the Philippine sports which get more of their budget from Pagcor.
”I believe it’s a good proposal but it’s up President Aquino to decide. It’s worth look into,” Legarda said.
”I believe sports is one of the sectors which rely heavily on Pagcor. It’s worth to discuss. Let’s see the pros and cons if we will privatize Pagcor. We should have an open mind,” Cayetano said.
Senator Ralph Recto, chairman of the Senate committee on government corporations and public enterprises, and senator Gregorio Honasan said the real value of Pagcor should be determined first before privatizing its operations.
Meanwhile, senator Chiz Escudero warned Malacanang to be careful with the offer to privatize the Pagcor.
”We should look and study it but government should not rush. The offer is enticing but Pagcor is already earning every year. We should know whether it is now high time to sell it,” Escudero said.
