Lucky South 99’s corporate registration revoked —SEC

The corporate registration of Lucky South 99 Corp. has been revoked for violating its articles of incorporation as it operated a Philippine Offshore Gaming Operator (POGO) facility in Porac, Pampanga, the Securities and Exchange Commission (SEC) said Wednesday.

Citing its order, dated July 30, 2024, the SEC said its Enforcement and Investor Protection Department (EIPD) revoked Lucky South 99’s certificate of incorporation “for violating Section 44 of Republic Act No. 11232, or the Revised Corporation Code of the Philippines (RCC) in relation to Section 179 (j) of the RCC.”

The corporate regulator said Section 44 of the RCC provides that “no corporation shall possess or exercise corporate powers other than those conferred by the law or its articles of incorporation, and those necessary or incidental to the exercise of such powers.”

The SEC explained that Lucky South 99 Corp. was originally incorporated in 2019 under corporate name Lucky South 99 Outsourcing Inc.

The corporate regulator said that the company was organized “for the primary purpose of engaging in business process outsourcing activities, with a secondary purpose of engaging in the real estate business.”

In February 7, 2024, it amended its articles of incorporation and changed its name to Lucky South 99 Corp. with the “primary purpose to the business of gaming, entertainment and content streaming of live gaming action together with the operation of electronic games at gaming sites.”

The SEC said the company’s secondary purpose included the development of a hotel with internet shops and gaming facilities.

However, an investigation by the EIPD revealed that Lucky South 99 has been included in the list of Offshore Gaming Licensees issued by the Philippine Amusement and Gaming Corporation (PAGCOR) as early as August 8, 2023, the agency said.

Moreover, the SEC said the Department of the Interior and Local Government (DILG) also announced, in an advisory dated September 19, 2022, that it conducted a raid operation in Lucky South 99’’s office “for operating without license and allegedly being involved in the trafficking of Chinese nationals.”

The DILG subsequently closed down Lucky South 99’s POGO facility in Pampanga.

“It is important to emphasize [that Lucky South 99 Corp.] as a juridical person, is only allowed to exercise powers inherent to its corporate existence as provided in the [RCC] and those conferred in its [articles of incorporation],” the order read.

“Considering that nowhere is it stated in its primary purpose that Lucky South 99 Corp, is authorized to engage and /or act as a Philippine Offshore Gaming Operator in the Philippines, the activity of the company that intends to mislead or deceive the public into believing that it was authorized to conduct the aforesaid activities is considered an ultra vires act and therefore constitute serious misrepresentation,” according to the SEC order.

Lucky South 99 is the operator of the POGO hub in Porac, Pampanga that was raided in June.

One of its incorporators, Cassandra Li Ong, was apprehended overseas and brought back to the Philippines last month along with Shiela Guo, the sister of former Bamban, Tarlac mayor Alice Guo. Money laundering complaints have been filed against Ong, the Guos, and several others over the POGO hubs in Bamban and Porac. — BM, GMA Integrated News