MANILA, Philippines - President Benigno "Noynoy" Aquino III on Monday said he is seriously considering a proposal to privatize the Philippine Amusement and Gaming Corporation (PAGCOR) after receiving a US$10 billion offer from the group of San Miguel Corp. vice-chairman Ramon Ang.
Speaking to reporters at the sidelines of the 43rd ASEAN Foundation Day in the Department of Foreign Affairs, Aquino said the $10 billion offer is "a very interesting proposal. But at the same time we have to study the proposal first."
He said the government is still reviewing PAGCOR's books and operations amid reports of various irregularities in the government agency.
“There are so many allegations with regards to PAGCOR. You have to ensure that if you intend to sell something, it is at the best price we can get,” Aquino said.
He earlier said he had noticed the proliferation of gaming establishment in places where there are fewer tourists such as Cavite and Tarlac.
"You are all witnesses to a proliferation of so many gaming establishments and some of them I don’t agree with. There are zero tourists in the particular area yet there exists a gaming facility that should target the tourism industry,” he said.
The 41-casino chain reported a 2008 net income of P29.62 billion ($640 million).
Under the terms of its franchise, half of PAGCOR's income goes straight to the national budget, with the balance going to host cities, a fund controlled by the president's office, and various taxes.
Sen. Sergio Osmeña III earlier said he is in favor of privatizing the business part of PAGCOR that runs casinos to avoid a monopoly of the gambling business.
"The big anomaly is that we have these two duties cited under one body. So there's a conflict of interest," he said.
In a separate interview, former PAGCOR chairman Ephraim Genuino said he does not oppose the Aquino government's privatization plan, but noted that the move could affect up to 13,000 employees.
He said small casinos, poker clubs, small betting stations and VIP clubs are already being operated by private parties, with PAGCOR getting 25-40% of profits. with Agence France-Presse
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