A joint inquiry by the House Committees on Public Order and Safety and on Games and Amusements has uncovered a complex network of Chinese nationals implicated in illegal Philippine Offshore Gaming Operators (POGOs) and drug trafficking.

Santa Rosa City Rep. Dan Fernandez presented a detailed matrix linking several Chinese nationals, including businessman and former presidential adviser Michael Yang, to both alleged illegal POGO activities and drug operations.

Yang, who served as an adviser to former President Rodrigo Duterte, faces an arrest and detention order from the House for his failure to attend the hearing on his alleged involvement in a P3.6-billion drug bust in Mexico, Pampanga, last year.

“It’s not only the criminal activities of POGOs and the corporations established by Chinese nationals, but also drugs that are involved,” Fernandez said.

Fernandez and the Committee on Games and Amusements, chaired by Cavite Rep. Antonio Ferrer, have been investigating the proliferation of criminal activities associated with illegal POGOs.

He began the presentation by citing the findings of a probe initiated last year by the House Committee on Dangerous Drugs into the P3.6-billion shabu bust. The investigation revealed that numerous hectares of land were being acquired by corporations with Chinese national incorporators.

The matrix presented by Fernandez illustrated the interwoven criminal activities facilitated by POGOs and the various corporations established by Chinese nationals, showing connections between drug trafficking and these entities.

Key figures included Aedy Yang, an incorporator of Empire 999 Realty Inc., which purportedly owns the warehouse where the P3.6-billion worth of shabu was seized by the Philippine Drug Enforcement Agency (PDEA). According to Fernandez, Aedy and Empire 999 co-incorporators Willie Ong and Jack Yang had their passports revoked.

The matrix also detailed that Aedy is an incorporator of Golden Sun 999 Realty and Development Corp., alongside Rose Nono Lin who is married to Alan Lim. They were linked to the Full Win Group of Companies, chaired by Yang, who was also a prominent financier of Pharmally.

Pharmally was embroiled in a scandal over allegations of overpriced medical supplies it provided to the government for the Covid-19 pandemic response during the Duterte administration.

Fernandez noted that Pharmally’s incorporators included Lincoln Uy Ong and Gerald Cruz, the latter a shareholder in Brickhartz Technologies which supports Xionwei Technologies, a POGO owned by Weixiong Lin, also known as Alan Lim, who was allegedly involved in a 2003 shabu raid in Cavite.

Michael Yang’s brother, Hong Jiang Yang, is an incorporator of Paili State Group Corporation, alongside Rose Nono Lin and Hong Ming Yang, believed to be another alias of Michael Yang.

Fernandez also highlighted findings from the Anti-Money Laundering Council regarding controversial Bamban, Tarlac Mayor Alice Guo, who had 36 accounts involved in bank transactions totaling P29 billion. Hong Jiang Yang had transactions with Guo amounting to P3.3 billion, with unclear origins and destinations.

Fernandez questioned the relationship among these individuals and POGO operations, stressing the need to uncover the truth behind these extensive financial movements. He also mentioned other individuals like Wesley Guo and Cassandra Li Ong, whose connections to Mayor Guo are under investigation.

“The instruction [to us] is to ferret out the truth and find out this linkage of the involvement of drugs,” Fernandez emphasized. He underscored the collaborative efforts of various committee chairpersons, including Acop, Barbers, Ferrer, Rep. Joseph Paduano, and Manila 6th District Rep. Bienvenido “Benny” Abante Jr. of the Committee on Human Rights, to uncover the nexus between drugs and POGO operations.

Fernandez concluded by highlighting the scale of the financial transactions. “Come to think of it, P29 billion si Alice Guo pa lang ‘yan at umikot sa kanyang (and that’s only Alice Guo and it involved her) 36 accounts. So what more the others?”

Revenue losses not that great

Meanwhile, Senator Win Gatchalian said Thursday the ban on POGOs will not result in significant revenue losses. Gatchalian, who chairs the Senate Committee on Ways and Means, said the chamber will push for legislation to enforce President Ferdinand Marcos Jr.’s recent order banning POGOs in the country.

Gatchalian noted that the Bureau of Internal Revenue is expected to collect P16.08 billion from POGOs, while the Philippine Amusement and Gaming Corporation is projected to generate P5.95 billion this year. In 2023, the BIR reported that POGOs remitted P10.32 billion to the government.

“POGOs have been lobbying to create an impression that they generate substantial revenues but that is not the case,” Gatchalian said, adding that local government units will play a crucial role in effectively implementing the POGO ban.

The Department of Labor and Employment has indicated that Marcos’ order will affect at least 25,064 local POGO workers.