Sublessor of Illegal POGO Operating Near Senate is Marcos’ Reclamation Chair Alex Lopez

October 11, 2024 Philippines Crime & Legal

The Philippine Reclamation Authority (PRA) is facing scrutiny after it was revealed that its chairman, Atty. Alexander Lopez, is linked to a Philippine Offshore Gaming Operator (POGO) company involved in alleged love scam operations. Lopez, appointed by President Ferdinand Marcos Jr., is a sublessor to 3D Analyzer Information Technologies Inc., which was recently raided by authorities. This revelation raises questions about the governance and oversight of POGO operations in the Philippines.

Lopez, in his role as chairman and CEO of Pacific Concrete Products Inc., has been leasing the ground floor of a property owned by the Philippine National Construction Corporation (PNCC) to 3D Analyzer since January 2024. According to a sublease contract obtained by Rappler, the property is under a 25-year lease held by Lopez’s company. At the time of the lease, President Marcos had already announced a ban on POGOs, casting doubt on the legality and ethics of Lopez’s arrangement.

In a phone interview, Pacific Concrete’s counsel, Aldo Del Rosario, confirmed the sublease and highlighted that 3D Analyzer is just one of many sublessees. “Our company has been established since 1959. We are a Quadruple A contractor,” Del Rosario stated, distancing the company from the recent allegations against 3D Analyzer. However, he also acknowledged that the legal and operational responsibilities of the lessee fall solely on the lessee.

The situation escalated after 3D Analyzer, which obtained an Internet Gaming License in September 2023, was found to have misled the Philippine Amusement and Gaming Corporation (PAGCOR) about its operational status. Despite claiming to have ceased operations, the company continued to hire new employees. “Niloko nila yung Pagcor, sabi nila hindi na sila operational,” said Winston Casio, spokesperson for the Presidential Anti-Organized Crime Commission (PAOCC). (They fooled PAGCOR, claiming they were non-operational.)

A joint operation involving the PAOCC, the National Bureau of Investigation (NBI), and the Bureau of Immigration (BI) on October 3 uncovered troubling evidence of love scams at the POGO site. Authorities discovered pre-registered SIM cards, multiple phones per worker, and numerous open windows for secure messaging apps. These findings pointed to an organized effort to exploit foreign nationals.

3D Analyzer’s corporate structure is primarily composed of Filipinos, with one Chinese individual registered as Filipino with the Securities and Exchange Commission. Del Rosario defended the legitimacy of 3D Analyzer, asserting that the company had presented the necessary permits and licenses to operate legally. “Yung mga na-raid dati yung mga illlegal , di ba, yung mga walang permit, but 3D Analyzer showed business permits,” he said. (The ones raided before were the illegal ones, those without permits.)

Despite having the appropriate permits, the timing of the raid raised eyebrows. POGO operations had been banned by President Marcos, yet 3D Analyzer continued its activities unabated. During the raid, 254 workers were apprehended, including 190 foreigners who were found to be violating immigration laws.

The PAOCC has stated its commitment to pursuing those involved in the operations. Casio expressed concerns about the operation’s blatant disregard for the law. “When we got there, we saw in the IDs that they were just new hires,” he noted. “There was really no plan by 3D Analyzer to stop operations, so we are going after them.”

In light of the president’s announcement regarding the POGO ban, Del Rosario claimed that they had reached out to 3D Analyzer to ensure compliance. However, he reported that the company did not respond to their inquiries. “Yes, we sent them a letter reiterating President Marcos’ statement during his State of the Nation Address that POGOs should wind down by December 2024… unfortunately no [they did not answer],” he said.

This situation not only raises questions about the operational integrity of POGO companies but also about the role of government officials who may be complicit or unaware of ongoing illegal activities. Lopez’s dual role as a government appointee and a businessman connected to a POGO raises concerns over potential conflicts of interest.

Senator JV Ejercito has also highlighted the importance of ensuring that foreign nationals do not exploit loopholes in the law. He pointed out that the ongoing investigations into these operations serve as a wake-up call for stricter regulations. “This should be a wake-up call for us to be more strict,” he said.