Solon wants gambling in Camarines Norte probed

MANILA, Philippines - An investigation by the House of Representatives looms over a former Bureau of Internal Revenue commissioner's claims of illegal gambling operations in Camarines Norte province. Former BIR chief and Camarines Norte Rep. Liwayway Vinzons-Chato also questioned a special economic zone's authority to grant permits to operate gaming operations outside its jurisdiction. "How can this be a tourism-related activity when the activity itself is in a different jurisdiction or worse, existing only in cyberspace?" she asked in an article on the House of Representatives Web site. Chato questioned alleged illegal virtual jai-alai operations by Spanish-owned Meridien Vista Gaming, Corp. in Camarines Norte, her home province. Chato questioned how Meridien, whose license to operate was granted only by CEZA and neither by Congress nor by the Philippine Amusement and Gaming Corp. (PAGCOR), was able to operate in her province and outside the CEZA's jurisdiction. "CEZA's power should be exercised only within its jurisdiction and any license granted by it to any entity which operates outside its jurisdiction should be considered void," she said. She said she learned of the operation last Feb. 13, when a "conscientious mayor" consulted her on the firm's pending application for a mayor's permit in his turf. The mayor also said mayors of other towns were pressuring him to grant the permit to Meridien. Chato said a study of the corporation's license to operate showed it is licensed as a small town lottery operator by Cagayan Economic Zone Authority (CEZA). Affirming the authority to grant such a license was the Office of the Government Corporate Counsel (OGCC) through an opinion it issued on November 22, 2007 to CEZA Administrator Jose Marie Ponce. Chato noted RA 7922, the Cagayan Special Economic Zone Act of 1995, allows CEZA to "manage and operate" the Cagayan Special Economic Zone and Free Port. She contested the OGCC’s opinion that jai-alai falls under CEZA's list of activities. Worse, she said Meridian is stepping on the local autonomy of LGUs by invoking the tax incentive granted under RA 7922 as opposed to tax. She emphasized the "highly anomalous" opinion of the OGCC that jai-alai betting stations are exempted from tax in the city or municipality it is located, is an incorrect application of the Local Government Code. "As a Catholic citizen and a legislator, I cannot tolerate all forms of gambling especially not in my province while I am in this position," she said. She requested the House Committees on Ways and Means, Franchise, Games and Amusements, and Good Government to investigate and prove if there are indeed violations or abuses committed by any of the mentioned entities and agencies. "We cannot allow this tyranny to continue lest we abdicate to CEZA the sole power to declare which gambling activities are to be made legal and where it can be operated. Doing so is tantamount to a declaration of the entire country as a special economic zone under CEZA and legalizing all forms of gambling without the benefit of a Congressional Act," she said. - GMANews.TV