AUG 23, 2015

NR # 3935B

Congressional probe into illegal gambling operations in SEZs

A party-list lawmaker has initiated an inquiry into the reported rampant illegal gambling
activities based in special economic zones and manned mainly by foreigners.
Apart from possible violation of immigration, investment and IT laws and regulations,
these illegal gambling operators have also been allegedly engaged in massive tax evasion, gun
running and other crimes, ABAKADA party-list Rep. Jonathan A. Dela Cruz revealed.
Dela Cruz filed HR 2255, directing the House Committee on Good Government and
Public Accountability to investigate, in aid of legislation, the reported proliferation of illegal
gambling operations in the country in the guise of gaming and information technology
operations, principally based in special economic zones and manned mainly by foreigners, to
determine possible violations of existing laws and for other purposes.
The author noted that in the course of the House deliberations on the alleged bribery and
corruption activities involving Chinese national Wang Bo, a number of issues and concerns
regarding possible violations of immigration, investment and taxation laws were unearthed.
One such issue involves the loose and oftentimes conflicting appreciation and
implementation of immigration laws, tending to afford officials and personnel of the Bureau of
Immigration and Deportation (BID) undue discretion, creating in the process an environment
susceptible to pressure and corruption, Dela Cruz pointed out in HR 2255.
The lawmaker also expressed concern over the seeming ease why which companies,
especially those engaging in so-called new and improved information and communications
technology systems, get to be registered by the SEC and subsequently by the special economic
zones.
The easy and loose manner by which these companies have been given legal status to
conduct their businesses has resulted in the spike in criminal activities including but not limited
to money laundering, bribery and corruption of public officials, he added.
Dela Cruz further noted that these illegal gambling operations has also merited the
serious concern of foreign governments and agencies which, in the case of Wang Bo, resulted in
his being charged with conducting large scale illegal online gambling operations.
Wang Bos alleged illegal online gambling operations involved Chinese nationals, and
put on the watch list of both the government of the Peoples Republic of China (PROC) and the
INTERPOL, he added. (30) dpt