Quad Committee Probes Possible Money Laundering Through POGOs in Land Purchases

The Office of the Solicitor General was urged to investigate alleged fraudulent land ownerships by Chinese nationals in the Philippines, out of fear that the funds used to purchase these may have been funneled through POGOs (Philippine Offshore Gaming Operators) as part of money-laundering schemes.

Quadcomm Committee chair Ace Barbers made this suggestion during a session last Monday, October 21, 2024, with lawmakers urging the OSG to investigate these fraudulent transactions in light of growing concerns over illegal offshore scam hubs and President Ferdinand Marcos Jr.’s running order to have all illegal POGOs removed by the end of the year.

Barbers stated that the quad committee is currently investigating whether the funds used for land purchases in the country were part of a money laundering scheme linked to POGOs, noting that the source of the funds remains unidentified.

“A lot has been discovered. Chinese nationals purchased huge tracts of land and we know that the Constitution prohibits foreign nationals from acquiring 100-percent ownership of our lands and putting up corporations,” Barbers was quoted as saying in a report published by the Daily Tribune.

During a session on Monday, October 21, the House Quad Committee alleged that these individuals used fraudulent Filipino birth certificates, obtained from the Philippine Statistics Authority (PSA) or local civil registrars, to acquire land and establish businesses in the country. These documents were submitted to the OSG during the session. Abang Lingkod Partylist Rep. Joseph Stephen Paduano, co-chair of the Quadcom, revealed that land in Pampanga amounting to thousands of hectares is largely controlled by Chinese-owned companies.

Two Chinese individuals, Aedy Tai Yang and Willie Ong, were accused of involvement in questionable land transactions in Mexico town, Pampanga. Documents submitted to the OSG showed the link of Sunflare Industrial Supply Corp and Empire 999 Realty Corporation to Chinese nationals involved in property sales.

Yang’s birth certificate, marriage certificate, and tax declarations were handed over for further investigation. Paduano also raised concerns about Yang’s possible ties to former Mexico, Pampanga Mayor Teddy Tumang, who faced corruption charges during his tenure.

Barbers also highlighted highlighted that Empire 999 incorporator Willie Ong has 300 land titles registered under his name. Barbers noted that many Chinese nationals are using Filipino-Chinese citizens as legal fronts for their businesses to circumvent the country’s laws on foreign ownership.

The Philippine Constitution restricts foreign ownership in specific industries, allowing foreigners to own only up to 40% of certain corporations. At least 60% if a corporation’s capital must be owned by Filipino citizens, according to Article XII, Sec. 2 of the Philippine charter.

The committee urged the OSG to expedite legal actions, such as civil forfeiture and asset preservation, to address the fraudulent acquisitions. Assistant Solicitor General Hermes Ocampo confirmed that the OSG would review the documents and determine whether the properties remain under Chinese ownership or have been transferred to qualified Filipino entities PSA guidelines for late birth certificate registrations and calling for stricter measures to prevent the issuance of fake citizenship documents are also being evaluated.

Santa Rosa Lone District Rep. Dan Fernandez emphasized the need for stricter birth certificate requirements to prevent exploitation by Chinese nationals, while the House Quad Committee recommended that the OSG collaborate with various government agencies, including the Department of Justice and PSA, in its investigation.

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