By Komfie Manalo
"We have until the end of the year to ensure that all displaced Filipino workers will have new jobs and I think that is more than enough time. The DOF will work closely with the Department of Labor and Employment (DOLE) to ensure that the workers' incomes will not be severely disrupted and that we provide them with proper reskilling and upskilling training for new employment," Recto said.
In his third State of the Nation Address on Monday, President Ferdinand "Bongbong" Marcos Jr. ordered the Philippine Amusement and Gaming Corp. (PAGCOR) to ban POGO by December this year.
Recto said he submitted a cost-benefit analysis recommending the prohibition of POGO operations due to reputational risks and social costs.
The DOF estimates showed that the net cost of POGO operations amounts to P99.52 billion annually, while the estimated total economic benefits reach P166.49 billion annually.
The economic benefits are considered government revenues, such as tax revenues from the Bureau of Internal Revenue (BlR) and gross gaming revenues from PAGCOR.
Other estimated direct economic benefits include estimated income from office and residential space rentals, transportation, and the additional demand from the private consumption of employees and entities.
Recto, however, said that the estimated total economic costs amount to P265.74 billion annually.
The estimated economic costs include the undesired effects of reputational risks, which impact foreign direct investments.
According to DOF's cost-benefit analysis, POGO-related crimes also negatively impact the country's attractiveness as a tourist destination.
Recto said POGOs also entail social costs, which include the loss of life as well as physical and psychological harm to victims of criminal activities.
Recto said he fully supports Marcos' directive to ban POGOs.
"As I have recommended to the President, POGOs come with significant reputational risks and we have seen the negative impacts and destruction they have caused to our country because of crimes. Banning them won't significantly affect the economy because the costs of keeping them far outweigh the benefits," Recto said.
LGU's compliance
Following the President's pronouncement of a total ban on POGOs, Department of the Interior and Local Government (DILG) Secretary Benjamin Abalos Jr. said he has already directed local government units (LGUs) to scrutinize documents of establishments as the first line of defense in granting business permits.
The DILG chief said local officials who have reason to believe that a business is engaged in suspicious and illegal activities must coordinate with proper authorities.
"We are going around; we would make sure that the process of getting a mayor's permit is organized. I had a meeting with the LGUs; we said the number one thing that must be checked is the mayor's permit.
The mayors can grant this and revoke it if an establishment refuses inspections. Of course, we would also check the licenses on sanitation and engineering matters and the one coming from the BFP (Bureau of Fire Protection)," Abalos said in an interview with PTV-4 after the SONA.
Abalos said he is flying to the Visayas in the coming days to verify information on seven entities monitored by the Philippine Amusement and Gaming Corp. that are allegedly linked to POGOs.
Abalos said business process and licensing offices (BPLOs) and village officials must also ensure that only those who conduct legitimate operations are given business permits.
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