Industry News | 16 Oct 2024

The most recent arrest of POGO could reveal a larger plot.

A "big fish" from the collapsed offshore gaming industry was apprehended last week by Philippine authorities.  The investigation is relying on Lyu Dong as a possible conduit to other influential individuals, including high-ranking government officials.

 Near Metro Manila, Dong (or Lin Xunhan) was apprehended by immigration officials and the Philippine military on October 10.  A "kingpin" of the criminally-infested offshore gaming industry, the Chinese national has been characterised by some.

 Some Philippine Offshore Gaming Operations (POGOs) were simply fronts for internet scams, pretending to be authorised licensees.  Evidence of kidnapping, forced labour, torture, murder, and money laundering was found during raids of POGOs in many locations, including Rizal, Angeles City, Bamban, and Porac.

 The business was promptly outlawed by President Ferdinand Marcos Jr. on July 22.  Not only that, but he gave the go-ahead to deport thousands of foreign employees. 

 It was said that Dong established a "network of scam farms."
 Dong has been named by authorities as a long-time head of POGO who "systematically built a network of scam farms" that pretended to be legitimate firms.  The Presidential Anti-Organized Crime Commission's Winston Casio hailed him as a "major financier and pioneer" in the field.  He went on to say that the arrest of Dong could lead to the punishment of others.

 "He might be able to identify certain people who helped him, whether they are private citizens or even government officials," Casio speculated.  "This man is a major player."

 A POGO purportedly headed by Alice Guo, a former mayor of Bamban, has been associated with Dong.  To run for office in 2022, Guo, who was born in China, allegedly pretended to be a Filipina.  She allegedly used Chinese money to support the local POGO at the same time.

 After being suspended as mayor and the POGO being raided, Guo escaped the nation.  A month down the road, in Indonesia, she was finally caught.  She is currently facing a barrage of accusations upon her return to the Philippines, including claims of people trafficking, money laundering, and deception.

 Allies at the highest levels
 Experts speculate that a vast web of conspirators may be involved due to Guo's link to Dong.  It may even indicate that Beijing is trying to gain access to Philippine government and businesses.  The leader of the POGO inquiry committee, Senator Risa Hontiveros, thinks that "someone from the government protecting him" was safeguarding Dong.

 Similarly, Senator Sherwin Gatchalian indicated that Guo's powerful friends had to have helped her escape.

 Someone in government may have connections to a criminal organisation.  It has been stated that the Porac POGO were represented by Attorney Harry Roque, who was once the spokesperson for former president Rodrigo Duterte.  Further evidence has connected Tony Yang—the brother of Michael Yang, Duterte's economic adviser—to the Bamban operation.

 Concerns about national security persist for the Philippines.
 China may attempt to penetrate Philippine corridors of power, according to Senator JV Ejercito.  The South China Sea territorial dispute is the backdrop of the POGO drama.

 "We can relax if we're in a normal situation," Ejercito said.  However, a confrontation with China has broken out.  We would prefer it if they would stay out of our political system.  One possibility is that they are putting their agents up for election as public authorities.

 Alice Guo "is the tip of the iceberg on how these POGOs weaken our security infrastructure," according to Gary Ador Dionisio, dean of the Benilde School of Diplomacy and Governance.