BSP’s Diokno says POGO pullout to have little impact on economy

Amid suspected money laundering activities involving Chinese nationals related to the controversial Philippine Offshore Gaming Operators (POGO) sector, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno is not in favor of the online gambling’s continued operations in the country as he downplayed its impact to the economy.

“Hindi naman ganun kalaki ang impact nung [POGO],” Diokno told GMA News Online.

Initial findings of the study on the financial stability risks of a potential pullout of POGOs in the country showed that it will not pose an abrupt impact of the property sector, according to the central bank chief.

“Alam mo ang real estate implication pala niyan nire-require pagka mga POGO operation... nire-require usually ang practice one year deposit. Halimbawa, they decide to leave merong one year deposit so hindi immediate ang impact on real estate,” Diokno said.

As calls for the closure of POGOs due to alleged crimes and corruption schemes involving Chinese nationals mount, the central bank chief who also chairs the Anti-Money Laundering Council (AMLC) said that looking at the “benefit and cost” of the online gambling sector to the economy he is not in favor of their continued operations.

“Kasi meron ding negative effect eh... prostitution, criminality... tsaka ‘yung problem sa AMLC negative din ‘yun sa atin,” Diokno said.

During the Senate probe on the supposed dirty money brought in to the country by Chinese nationals, AMLC Executive Director Mel Georgie Racela said that net inflow from POGO is only at P7 billion which is only .29% of the P18.6 trillion worth of Philippine economy.

To get a full understanding on the POGO’s financial stability risks to the country, Diokno said the study he commissioned last year will be released “in two weeks time.” 

The central bank chief said the study will also include how coronavirus disease (COVID-19) outbreak impacted on the online gambling industry.

Over the past few weeks, the Senate has investigated a bribery scheme involving Chinese nationals in airport terminals and prostitution dens catering to workers of POGOs.

The legislative body also started on Thursday its investigation on the huge amounts of cash brought into the country by Chinese nationals amid speculation these could be used for criminal activities. — RSJ, GMA News