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http://dnsc. academia. edu/ennelgArugal Final Paper in PA 231 Public Fiscal Administration Glenne B. Lagura Gaming || Gambling (Philippine Amusement and Gaming Corporation – PAGCor) Submitted to: DR. ANTONIO M. FAUNILLIAN JR. , MPA Instructor Submitted by: Glenne B. Lagura UNIVERSITY OF SOUTHEASTERN PHILIPPINES BO. OBRERO, DAVAO CITY College of Governance and Business Master of Public Administration April 10, 2012 1 Glenne B. Lagura Outline: I. Introduction a) b) c) d) Background of PAGCor Board of Directors Management PAGCor’s Operational Highlights ? Sources of PAGCor’s income ? PAGCor’s earnings ?PAGCor’s contribution to nation building II. Discussion a) Where does PAGCor’s income go? b) Corporate Social Responsibilities of PAGCor III. Analyses a) Social Problems b) Reduce Revenue? c) PAGCor: Problems and Challenges ? Illegal becomes Legal ? Aware or Unaware? or Aware to be Unaware? ? Institutional Problems d) Anomalies ? Regulate†¦ A uthorize†¦ WATCHED! ? Is gambling a cursed? e) Corruptions f) Recent Issues IV. Possible Solutions and Recommendations a) b) c) d) e) Maintain the Status Quo; PAGCOR to concentrate on its regulatory function; Privatization; Abolish and close PAGCOR; and Formulated solutions from a study.V. VI. Conclusion References 2 I. Introduction A. Background of PAGCor The role and impact of Government-Owned and Control Corporation (GOCC) on the fiscal position of the government and the economy continue to be significant to this day. Despite reforms undertaken in the past, according to the Commission on Audit, there remain around one hundred thirty three GOCCs operating in the areas of agriculture, transportation, infrastructure, public utilities, provision of housing, industrial development and finance. The dismal performance of many of these corporations has contributed to the fiscal deficits of the public sector.As defined under PD 2029, GOCC is â€Å"a stock or a non-stock corporation, whether performing governmental or proprietary functions, which is directly chartered by special law or, if organized under the general corporation law, is owned or controlled by the government directly or indirectly through a parent corporation or subsidiary corporation, the extent of at least a majority of its outstanding capital stock or of its outstanding voting capital stock. † Philippine Amusement and Gaming Corporation (PAGCor) is a 100 percent government-owned and controlled corporation.It was established to regulate all games of chance in the country. It was created in 1977 to oversee the operation of gaming casinos, to generate funds for the government’s developmental projects, to promote tourism in the country, and to help curb illegal gambling. PAGCor had an initial authorized capital stock of P5 million which was later increased to P200 million. PAGCor is authorized to borrow money from local or foreign sources. Half of PAGCor’s earnings are remitte d to the Bureau of the Treasury (BOT) to be used in programs and projects as directed and authorized by the Office of the President of the Philippines.This is aside from the mandated beneficiaries which receive funding from PAGCor. Its remaining funds form part of the Social Fund to finance infrastructure and/or socio-civic projects. The Corporation was created during the Martial Law years by virtue of a Presidential Decree (PD 1067-A) in response to calls for the Philippine Government to put a stop to the growing proliferation of illegal casino operations in various parts of the country then. The law creating PAGCor was later amended and consolidated by PD 1896 otherwise known as the PAGCor Charter.Under this Charter, PAGCOR is mandated to: ? Regulate, authorize and license games of chance, games of cards and games of numbers, particularly casino gaming in the Philippines; ? Generate revenues for the Philippine Government’s socio-civic and national development programs; and ? Help promote the Philippine tourism industry. In June 2007, Republic Act 9847 was passed by the Philippine Congress, extending the corporate life of the state-run gaming firm by 25 years, renewable for another 25 years. It also prescribed the following amendments to the PAGCor Charter: 3 ? ? ? ?PAGCor can enter into agreements including joint venture, with any person, firm, association or corporation; Requirements to obtain consent of the local government authority that has territorial jurisdiction over the area chosen as site for any PAGCor’s operations; Exclusion of jai alai from PAGCor operations; and Delimitation of regulatory authority and power over gaming activities covered by other existing franchises, regulatory bodies or special laws. Presently, PAGCor is the third largest revenue-generating arm of the government next to the BIR and the Bureau of Customs.From January to November 2011, PAGCor generated gross revenue of P33. 15 billion, P15. 51 billion of which was channeled to large-scale socio-civic programs. B. Board of Directors The Board of Directors is composed of five (5) members, three (3) of whom shall come from the government sector and shall be appointed by the President of the Philippines and the other two (2) shall come from the private sector who own at least 1 share of stock in the corporation and shall be elected by the stockholders of the corporation in the annual general meeting or in a special meeting called for such purpose.Each Director shall serve for a term of one (1) year and until his successor shall have been duly qualified and appointed. C. Management PAGCor is managed by its Chief Executive Officer who is the concurrent Chairman of the Board. He is assisted by PAGCor’s President and concurrent Chief Operating Officer, a Vice-President for Administration, and various department heads. 134 Personnel management policies set by the Board of Directors govern the hiring of personnel.All employees of the casinos and related services are classified as â€Å"confidential† appointees and their employment is exempt from the provisions of the Labor Code or any of its implementing rules and regulations. As such, employee unions or any form of employee associations are not allowed to be formed to ensure continuous and uninterrupted service to its customers. D. PAGCor’s Operational Highlights PAGCor is engaged in the business of gaming and is the only entity franchised by the government to operate casinos in the country. Its major product lines consist of table games, slot machines, and chip washing.It also offers internet gaming, internet sports betting, and bingo and slot machine demo units. Internationally recognized games like Baccarat, Black Jack, Roulette, Craps, Big & Small, Pai Gow Poker, Stud Poker, Pontoon, and Super 6 are available in its Casino Filipino branches. Aside from table games and slot machines, PAGCor has also expanded its operations to include the conduct and regul ation of bingo games as it expands the image of Casino Filipino from a gaming venue into a vehicle for wholesome entertainment for the whole family. 4 With all those line of business transactions, PAGCor is set to uphold its olicy by constantly upgrading and using a state-of-the-art technology to make it at par with the top gaming destinations of the world as it puts into action its vision of becoming â€Å"A Global Corporation with a Global Mindset and a Filipino Heart. † ? Sources of PAGCor’s Income PAGCor derives bulk of its income from the winnings of the gaming, slot machine and in-house bingo operations of its different casino branches. The corporation also gets substantial earnings from other sources like its other regulated gaming activities such as private licensed casinos, poker operations, commercial bingo operations, E-games and others. PAGCor’s earnings PAGCor is the Philippine government third largest revenue-generating arm, next to the Bureau of I nternal Revenue (BIR) and the Bureau of Customs (BOC). From the time the government went into the direct management’s and supervision of casino operations in 1986 up to December 31 2010, PAGCor generated a staggering gross revenues of P355. 575 billion. ? PAGCor’s contributions to nation building Of the P355. 775 billion total revenues over the last 25 years, PAGCor’s contributions to nation building amounted to P203. 646 billion, which comprised 57% of the agency’s gross earnings during the period.These contributions were in the form of remittances to the BIR and the National Treasury which went directly to government coffers for funding farreaching and wide-ranging national; the Philippines Sports Commission for the training of the country’s national athletes in international sporting events and in cultivating Philippine sports at the grassroots; the Board of Claims to give justice to those who were wrongly accused or prosecuted; hundreds of comm unity development programs of nationwide implemented through the efforts of PAGCor’s casino host-cities which get a share from the corporation’s revenues; and the Presidents Social Fund which has been tapped to finance high impact programs such as construction of school bui8ldings, provision of potable water systems in the countryside, and funding of livelihood programs for the marginalized sectors of society, among others. II. Discussions 5 A. Where does PAGCor’s income go? In accordance with its Charter, PAGCor’s income is distributed in the following manner: ? ? ? ? ? % of net winnings goes to the BIR as franchise tax; 50% of the 95% balance goes to the National Treasury as the National Government’s mandated income share; 1% of the net cash income goes to the Board of Claims, an agency under the Department of Justice, which compensates victims of wrongful detention and prosecution; 5% of the balance after the Franchise Tax and the National Gover nment’s mandated income share goes to the Philippine Sports Commission to finance the country’s sports development programs; and Fixed amount is given to cities hosting Casino Filipino branches for their respective community development projects. Aside from the abovementioned mandatory contributions, PAGCor has also tapped as funding source for the implementation of the following vital laws: ? P 400 million a year or P2 billion in five years to the Early Childhood Car and Development Program; ? P100 million initial funding to the Sports Benefits and Incentives Act; ? P300 million or P10 million a month to the Gasoline Training and Loan fund; ?P250 million to be taken from the remittance to the President’s Social Fund to implement the National Museum Act of 1998; ? P5 million a month to be taken from the National Treasury’s share to support the Comprehensive Dangerous Act of 2002; ? P30 million to fund the Children’s TV Act of 1997; ? P300 million c ontribution to the Barangay Micro Business Development Fund; ? P50 million for the National Book Development Trust Fund; and ? P312 million for the Department of Science and Technology. The remaining balance of PAGCor’s income is then remitted to the President’s Social Fund to help finance the priority projects of the government. Below is the figure indicating the *distribution of the revenue generated by the Corporation. 6 Based on the 2010 Annual Report of PAGCOR Figure 1: Income Distribution of PAGCor B. Corporate Social Responsibilities of PAGCor The following are the activities conducted by PAGCor as appended in the Annual Report 2011 of the institution: 1. 2. 3. 4. Bringing basic social services closer to the Filipino masses Helps blast victims get back on their feet – literally Restoring he Pasig River back to life Sharing the Gift of Hope – Pamaskong Handog III. Analyses As the third largest revenue generator in the country, PAGCor plays a vital r ole in the economic development and took part of responsibility with regards to fiscal advancement of the country.Aside from the bulk income generated by this institution, it attracts also the foreign investors to invest in this kind of business thus promoting the country as a tourist spot in terms of legal gaming and gambling. Even by that, though it brought a cause for the alleviation of the economic situation as per scrutiny, as a counterpart, it conveys some consequences and also faces problems and issues. The following sited situations prevails the point of view of the owner of this paper as to the current situation of PAGCor and its effects to the community. Further, some contents of this part contain documentation of issues and problems base from the current news and information cited from different reliable sources. Moreover, the views and opinions of the presenter do 7 ot necessarily reflect the contents or discussion of the neither class nor stand point of the subject inst ructor, thus all the generated opinions are purely coming from the presenter. ? Social Problems With the initial concept of regulating and legalizing any games of chance and gambling in the country in order to raise revenue, presently it gives an idea to the common people to formulate their own versions of establishing in any ways and means which are now considered to be as illegal. Some of the few illegal or unauthorized games or activities that exist are the following: cockfighting, jueteng, horse racing bingo and other forms of lotteries, slot machines other mechanical contraptions and devices and online gambling. All the above mentioned activities are against the PRESIDENTIAL DECREE No. 602 wherein it prescribes stiffer penalties on illegal gambling. Aside from the fact that it contradicts the law of the land, reality check, these illegal actions became a part of the regular activities of those individuals in a community who are engaging their selves to be part of these. Worse c omes to worst, these brought an obvious social problems which we encountered nowadays. It entices everyone, old and young even children to be involved in these activities. At an early age, children at this time learn the knowhow of involving their selves in these activities which brought pessimist consequences with regards to their studies and to the habitual lifestyle of the people.This reality is pretended to be unknown to all of us, considered to be a usual activities and unfortunately, big officials are the one who is behind under this operations. If it is the rule of the PAGCor to regulate these illegal activities, then who is in charge of implementing necessary actions to those who make these obvious offenses? What actions were countered already with regards to discontinuing these rampant activities which resulted to crime, death and other anti-humanitarian acts? Is the subject institution took already a response to the matter? Below is a statement quoted about illegal gamblin g by Roy Q. Lagarde in his article â€Å"The Scourge of Legalized Gambling†. Gambling’s negative consequences are even more formidable than the flaunted revenues to subsidize purportedly government’s social services programs. One which is a visible problem is crime. Historically, crime increases where gambling is legal. Studies showed that problematic gamblers sometimes turn to criminal activities to support their habit. Gamblers often deal drugs, embezzle, or steal to get money to gamble or to pay gambling debts. Prostitution, and general sexual immorality, likewise rises because of immoral entertainment provided in and near gambling houses. In fact, alongside with most gambling dens in Metro Manila KTV bars have sprouted like mushrooms, many of which conspicuously display Japanese characters and signs recruiting GROs. † 8 ? Reduce Revenue?It is visible already to the eyes of everybody the existence of those activities which are considered as illegal as t o the fact that PAGCor is the only institution that is authorizes to establish and to lead those activities. What a misery to imagine that even by now those establishment which are considered to be illegal in their operation are still in service of doing their unlawful work. Fortunate to the forefront of this criminal movement, it becomes a huge and growing business. Is the institution PAGCor, doesn’t bother to imagine what would be the effect of those growing illegal establishment in every region as to the income that is supposed to be generated by the institution? Accessibility wise, those illegal establishments can be nearly reach compare to those firms which are authorized to do such legal acts.If the PAGCor is the one also mandated to regulate those unlawful actions what possibly be the actions to be undertaken for the purpose of first, taking good care at their primary economic reason of generating revenue for the Republic of the Philippines, second, assessing their rol e as to the regulation of these rampant rising activities, third preventive measure of responding to this situation and last lawful actions that are needed to be done. ? PAGCor: Problems and Challenges A. Illegal? becomes Legal? Gambling is a major social problem in the country. Not even the ouster of President Joseph Estrada from Malacanang Palace, on charges of receiving â€Å"jueteng† money from syndicates, could abate the problem. Jueteng is said to be a P40-billion business in the Philippines, annually. The need to answer and to come up a solution as to the problem of rampant increase of illegal gambling in the country is quite an undying issue. It can be considered as an infinite problem in algebra, the constant looking for the value of â€Å"x† and â€Å"y†.In that case, the never-ending issue of the involvement of those influential persons is considered as the main angle to relate in this situation. Some if not many of the government officials in the cou ntry are involved in these illegal gambling and heard to be as the organizer and supporter of the prohibited gambling and gaming activities. â€Å"Philippine gambling laws permit a wide variety of licensed and taxed gaming options, yet Jueteng, the nation’s most popular game, is illegal and remains firmly in the hands of organized crime†, this statement was stressed in the article of Alex Nevsky, â€Å"Government Official Involved in Illegal Sports Betting in the Philippines† at the internet site www. gamingzone. om last April 26, 2011, where it was sited also the allegedly involvement of an administration employee in illegal gambling including operating illegal jai alai games and promoting online casino in the country. B. Aware or Unaware? Or Aware to be Unaware? In the published article â€Å"Is PAGCor a betting illegal gambling? † of Alejandro del Rosario at Manila Standard Today Newspaper last December 10, 2011, Senator Aquilino â€Å"Koko† Pim entel questioned the proliferation of gambling houses in the country. He queried also if the certain institution (PAGCor) is properly regulating the operation of these casinos which seem to 9 sprout like wild mushrooms. Senator Pimentel stated that PAGCor seems remiss in regulating the operation of these private casinos and electronic betting houses and lax in the granting of licenses to them.During that time, Pimentel heads the Senate committee on games and amusement, thus he seek to address the adverse effects of these gambling houses on the youth and the rising incidence of crime. C. Institutional Problems The following problems were cited based on the thesis of Cecilio Villanueva entitled â€Å"The Philippine Amusement & Gaming Corporation (PAGCOR) as Government Regulator and Operator of Legalized Gambling: It's Implications for National Security† which was published at www. ndcp. edu. ph last 2008: ? Unclear regulatory functions and procedures in registration/affiliation and granting of licenses; ? Lack of coordination with the Securities and Exchange Commission, DTI and other regulatory bodies; ?Relationship with the newly created Economic Zones Coordinate with PEZA and other entities empowered by law for economic zones; ? Relationship with the Local Government Units (LGUs); ? Problems with text scams; ? Casinos located close to each other; ? Operator Functions Gambling scams and syndicates / foreign terror groups; ? Arrogance/rudeness of the players; ? Overbearing presence of hookers and financiers to the disgust of players; ? Old and out-modeled machines and other gaming equipments; ? Church’s continued opposition to PAGCOR ; ? Perception of graft and corruption; ? Discipline/Attitudes of employees; ? So many employees of PAGCOR; ? More PAGCOR officials and employees being pirated for work abroad; ?Tourism Development Political intrigues; ? Financial Capacities ; ? How to continue with high income; ? Threat of privatization; ? Too much ex penses for non-organic personnel; and ? PAGCOR lagging behind in Asian Gaming Industry. Even by now, as we can see and heard at the news, with the recent issues PAGCor is facing, we can somewhat say that the institution is still trying to fix what is not being fixed out of those above cited problems. ? Anomalies A. Regulate†¦ Authorize†¦ WATCHED! In line with the article of Alejandro del Rosario, as accorded by Senator Pimentel, the issue is not the big revenue that can be generated by those casinos but they too need to be watched.The Senator recall incidences in past administrations when casino handlers were suspected of skimming from the revenue, where it should be that a portion of the revenue earned from these 10 casinos is supposed to go the President’s social amelioration fund. He added that the problem is the existence of small private gambling houses that propagate in many areas including residential ones. Signages of private poker clubs are everywhere and w hen it comes to the gambling houses, all are well shuttered with a guard-doorman usually stationed at the entrance and by that, we can only imagine what else goes on in there. B. Is gambling a cursed? In the paper of Roy Q.Lagarde it was stated by far also, there have been more accusations of anomalous transactions in PAGCOR including the P489 million in rents PAGCOR paid to the Hyatt Manila Hotel and Casino, and the hiring of 116 consultants, 103 retainers and many directors in exclusive clubs. It was further cited also in the said paper the standpoint of Francisco Tatad, erstwhile senator, whom charged Arroyo and some legislators for covering-up allegedly allowing PAGCOR to continue its operation. The senator explained the fact that PAGCOR was created under PD 1067-A, with a 25-year franchise to operate under PDs 1067-A, 1067-B and 1067-C, all issued on January 1, 1977. These decrees were, however, consolidated into one PD-No. 869 on July 11, 1983 without changing the 25-year cont ract, thus, the franchise was to expire January 1, 2002. But the Arroyo administration allegedly railroaded last December a bill which misrepresents the 25-year franchise as having taken effect on July 11, 1983 instead of Jan. 1, 1977, and expiring only on July 11, 2008 instead of having already expired on Jan. 1, 2002. ? Corruptions â€Å"The biggest problem, in a word, is corruption or at least the potential for it. In many years, not only few government officials have been implicated in gambling-related scandals. Members of House of Representatives constantly sat down in a session to address alleged scandals in the country’s gambling industry.Legislators have been demanding that the PAGCOR open its books to an audit so that the people will be able know how the ‘gaming’, if gambling, government corporation spends billions of pesos it earns from its operations. â€Å"Where do these revenues go and how does the general public benefit from them? † Rep. Cri spin Beltran asked during a House session. â€Å"It’s apparent that for all of PAGCOR’s projections that it donates millions to socio-civic projects of the government and contributes to charities, billions more are pocketed by its officials and their business partners in the private sector. PAGCOR is a government institution where corruption is inherent and undeniable. † quoted from the article â€Å"The Scourge of Legalized Gambling† by Roy Q. Lagarde at www. impactmagazine. net. To continue, Rep.Robert Jaworski said â€Å"From what I heard, PAGCOR is the Santa Claus for a lot of government officials and there is no way we could verify this report because of questionable disbursement procedures. I was also surprised that most of its finances are not covered by any auditing mechanism by Commission on Audit†. In factual basis, for several years, PAGCOR’s contributions to the President’s Social Fund did not pass through the National Tre asury until the 11 implementation of E-VAT recently, imposing a 10 percent tax on services not previously covered by the old VAT law including PAGCOR. ? Recent issues IV. Possible Solutions and Recommendations A. PAGCOR to concentrate on its regulatory function The idea of separating the roles of PAGCor is a situation that they should delve into.It is favorable to imagine separating the role of regulator and operator in order for the institution to focus in its focal function though it requires thorough revision. In an article from Philippine Star, â€Å"Palace: Separating PAGCor roles needs further study† by Delon Porcalla last March 05, 2012, Abigail Valte, deputy presidential spokesperson pointed out that Malacanang hinted already the amendment of separating the dual role of PAGCor but it requires further study. Further, PAGCor chairman and chief executive officer Cristino Naguiat Jr. , admitted that the idea requires congressional action which means going through the legi slative mill all over again .Naguiat said, PAGCor is open to spinning off its casino operations and retaining its regulatory role, to enable it to focus more on monitoring and policing the growing gambling business in the country. He stressed however that doing so would not be easy and that a closer study should be done. The scheme, if implemented, will have an impact on PAGCor’s financial commitments to national government and sports agencies. B. Privatization In an article of Francis Earl Cueto â€Å"Gambling is Life†, Edward King, spokesman for PAGCor chairman Efraim Genuino, told The Manila Times that first and foremost, one thing that people should remember is that PAGCor is a creation of law. The issue of privatizing PAGCor is also very controversial, with several lawmakers pushing for it and even more congressmen against it.King said that while the act can be considered purely from the noble and idealistic viewpoint that government should not be in the business of gambling, one has to think from the point of view of generating funds for the government. In addition, King said that if the government would privatize PAGCor, then all income goes to the private sector leaving only a small amount in taxes being paid to the government coffers. â€Å"If you give PAGCor to the private, they will just be paying taxes. There is a huge difference between a fraction of income from taxes to 100 percent, â€Å"King said. To comment with the situation, the issue of privatizing PAGCor in order to divest itself of assets to be more productive in the hands of the private sector would somewhat be an issue that talks a lot.The idea of transferring the management of the said institution into the private one for better management and proper delineation of function is a good thing to be heard, it could be beneficial in many ways. But, in my own perception, this dream might be turned into a great nightmare. We don’t know if those lawmakers/government offi cials have their own personal and hidden agenda of buying and operating 12 PAGCor as we could not deny the fact that the institution is producing bulky of pennies. This is the simple analogy, privatize PAGCor then, they get the income; the lawmakers may perhaps be getting their own kickbacks from certain lobby groups who want PAGCor for their personal purpose.If PAGCor will fall to the hand of those private individuals, then who will now regulate the activities of PAGCor? The point of arriving to this situation – selling another GOCC – emanates from the idea of poor management, corruption and undying anomalies. If that is the case, then the target is to seize the rats that slowly rotten the house and scrutinize the system and procedures brought by those pests. C. Abolish and Close PAGCOR. The call for the abolition of the government’s legitimate gambling institutions came as their funds were allegedly being used for political rather than charitable purpose. The recommendation to shut down Pagcor could be a â€Å"major reaction† because of reports of fund misuse, Deputy Presidential Spokesperson Abigail Valte said.To note with the issue, let us not forget that the ultimate goal of the mandate of PAGCOR, is to provide assistance to those in need. It is better to put in place systemic reforms first and see whether these systemic reforms will work before we talk about what really should be done to the agencies. In another way, it is indeed a fact that the institution is generating bulky income which serves as a great help in giving financial support for the economic development of our country. D. Formulated Solutions from thorough study As per cited abovementioned problems in the thesis of Cecilio Villanueva, below are the suggested solutions as respective counterpart: ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?Issue clear guidelines on licensing, grants of authority; Establish linkages with the SEC, DTI and other regulatory agencies; Establi sh clear operational guidelines with the L GUs in view of RA 9487 Seek clear guidance from NTC, DTI and other government agencies; Review zonal locations of the casinos or centers being applied for; Deputize PAGCOR to curb illegal gambling; Launch PR campaign / Security Measures ; Beef up security / Investments in CCTV cameras; Find partners under the 60/40 arrangements Corporate Social Responsibilities; Foster good relations with the Church; Establish Resident Ombudsman and COA to issue or make public records for transparency; Seminars on values, productivity; Strengthen the Disciplinary Board; Screening, testing of pplicants; Merit system; Human Resource Development; Loyalty awards; Focus more on hotel industry/ tourism; Vigorous marketing efforts to attract players; 13 Glenne B. Lagura http://dnsc. academia. edu/ennelgArugal ? ? ? In-depth study on privatization; Contract-out the services of the non-organic personnel; and Vigorous marketing efforts. V. Conclusion Despite the surg e of PAGCor income that has succeeded immensely in supporting the cash-strapped government, several lawmakers, nongovernment organizations and especially the religious sector are still firmly against government engaging in the business of operating casinos. Many Filipinos have long suspected that gambling money finances political campaigns in this country. But this has never been established as fact.The politicians who benefit from gambling funds will certainly lack the political will to spearhead an investigation. Reflecting the sentiments of the political leadership, law enforcers will also have no interest in verifying those perceptions. There are cops who even openly admit that gambling money finances police operations in certain areas of the country. Complicating the problem is the unsure state policy on gambling, which deprives the government of the moral high ground to crack down on illegal numbers games popular among the poor such as jueteng. Despite new laws imposing stiffe r punishment for illegal gambling, jueteng continues to thrive and enrich gambling lords.The government could go after these gambling barons and plug one of the largest sources of corruption by applying new laws against money laundering or even old laws on tax evasion. Lawmakers could pass legislation that will compel transparency in campaign contributions. It may be impossible to stop Filipinos from gambling, but it is not impossible to discourage the corruption that is endangered by illegal gambling Unfortunately for the nation, political will has always been lacking in both the executive and legislative branches when it comes to stopping the flow of money, especially big money, regardless of the source. The status quo has worked for the typical Filipino politician, whose attitude is, if it ain’t broke, why fix it?On the other hand, the idea of Senator Ralph Recto that the PAGCOR pork should go to national budget is agreeable it applies the mere saying â€Å"Prevention is better than Cure†. This is to prevent also the abuse of misusing the money which can be avoided if the discretionary funds were written into the General Appropriations Act (GAA) or the national budget. 14 References: Newspaper/ Published Journals: Burning House Infested with Rats is not Right Solution to Problem. Philippine Daily Inquirer ( January 16, 2012). Retrieved March 1, 2012 from http://opinion. inquirer. net/21183/burning-house-infested-withrats-is-not-right-solution-to-problem Cabacungan, G. (2012, February 28).Lawmakers rally round PAGcor, move to ban Wynn. Philippine Daily Inquirer. Retrieved March 03, 2012 from http://globalnation. inquirer. net/26911/lawmakers-rally-round-pagcormove-to-ban-wynn Calica, A. (2011, July 09). Palace No need to abolish PCSO, PAGCOR, The Philippine Star. Retrieved March 15, 2012 from http://www. philstar. com Cueto, F (2007, February 25). Gambling is Life. Retrieved March 13, 2012 from http://www. skyscrapercity. com/showthread. php? t =647381 Del Rosario, A. (2011, December 10). Is PAGCor a betting illegal Gambling?. Manila Standard Today Newspaper. Retrieved February 16, 2012 from http://www. manilastandardtoday. com/insideOpinion. htm? =2011/dece mber/10/andydelrosario. isx=2011/december/10 Diaz, J (2011, July 27. Lawmakers seek probe of PAGCor Anomalies. The Philippine Star. Retrieved March 20, 2012 from http://www. philstar. com Lagarde, R. The Scourge of Legalized Gambling. Retrieved March 12, 2012 from http://www. impactmagazine. net/v39v09/coverstory. htm PCSO, PAGCOR Pork should go to National Budget: Recto. abscbnNEWS. com(2011). Retrieved March 10, 2012 from http://www. abscbnnews. com/nation/07/13/11/pcso-pagcor-pork-should-go-natlbudget-recto Privatized PAGcor to bring in more revenues for gov’t. abscbnNEWS. com(2011). Retrieved March 10, 2012 from http://www. abscbnnews. om/ nation/08/16/10/privatized-pagcor-bring-morerevenues-govt Porcalla, D. (2012, March 05). Palace Separating Roles needs f urther Study. The Philippine Star. Retrieved March 5, 2012 from http://www. philstar. com PDF Files: 15 A Profile of Selected GOCCs. pdf PAGCOR Annual Report 2010. pdf Presidential Decree No. 1602. pdf Thesis: Villanueva, C (2008). The Philippine Amusement and Gaming corporation (PAGCOR) as Government Regulatorand Operator of Legalized Gambling: It’s Implications for national Security. Retrieved March 15, 2012 from http://www. ndcp. edu. ph/library/thesislist. php? start=1661 http://dnsc. academia. edu/ennelgArugal Glenne B. Lagura 16