PAGCOR privatization will raise at least P60 billion –Tengco

The privatization of the Philippine Amusement and Gaming Corporation (PAGCOR ) will enable the government to raise at least P60 billion in revenues, Pagcor Chairperson Alejandro Tengco said in his testimony at the House of Representatives.

Tengco, who was responding to Ways and Means Committee Chairperson Joey Salceda of Albay's question on how much the government would earn in the event PAGCOR is privatized, added, “[The Finance Department's] estimates are so high because we don’t have a lot of properties. [The venues of] our casinos are on lease. The original estimate of DOF is P200 billion to P250 billion. Pero hindi po mangyayari iyon because we don’t have a lot of properties.”

“We are looking at about P60 billion to P80 billion,” said Tengco.

The PAGCOR Chairperson, however, admitted that his estimate was on the conservative side.

“That is the minimum peg, of course, there is bidding. But what we can sell are the licenses to operate, and a few properties in good condition, “ Tengco said.

Salceda said that he estimated PAGCOR to be worth P120 billion to P128 billion.

Cagayan de Oro Representative Rufus Rodriguez, however, countered that selling PAGCOR would be counterproductive given that it was a major income source for the government.

“Why give the profit to the private sector when you can do it? With the new leadership in PAGCOR, there is no reason for it to be privatized. I oppose any privatization,” Rodriguez said.

“You are expecting P72 billion in income and you will sell it?” Rodriguez added.

Tengco, in response, said that PAGCOR’s mandate of regulating and operating casinos seemed to him to be improper.

“We are the only entity in the world that is a regulator and operator. It is unethical because we give licenses and we operate [casinos], too. The Entertainment City is generating so much money, but the location of other licensed casinos are nearby and we are competing with them,” Tengco said.

He added that regulating licensees took so much time that PAGCOR tended to neglect self-regulation.

“I have to be very candid and honest. We overlook regulating ourselves, and that is unfair to the licensees. But I take note of your comment,” Tengco added, referring to Rodriguez.

Last month, Pagcor said that it was pursuing privatization to strengthen its regulatory function. — DVM, GMA Integrated News