Aquino: Proposal to sell Pagcor interesting but...

(Updated 5:45 p.m.) President Benigno "Noynoy" Aquino III said he is interested in the proposal of San Miguel Corp. Vice-chairman Ramon Ang for the government to sell the Philippine Amusement and Gaming Corp. (Pagcor) to Malaysian billionaires by as much as $10 billion. Aquino, however, said Malacañang still has to study the matter first as there are many pending allegations regarding Pagcor, which was formerly headed by Efraim Genuino, a known ally of former president Gloria Macapagal-Arroyo. "It is a proposal, it is a very interesting proposal. But at the same time we have to study the matter first," Aquino said at an ambush interview at the Department of Foreign Affairs, where he gave the keynote address for the 43rd anniversary of the Association of Southeast Nations. "I think I stated to you before, we have a problem, there are so many allegations with regards to Pagcor. You have to ensure that if we intend to sell something, it is at the best price that we can get," said the president, who had expressed interest in privatizing the Pagcor early on. At least three senators — Senate President Juan Ponce, Sergio Osmeña III and Franklin Drilon — favored the privatization of Pagcor if its regulatory functions will remain with the government. "They have to separate the regulatory function because that is government and the operation must be privatized. It will be more manageable if the government is not involved in the winning or losing in the business," Enrile told reporters in an interview on Monday. Drilon said Pagcor should limit itself to issuing licenses and regulating casino operations, adding that the income generated from licensing should go directly to the government’s general fund just like ordinary taxes. For his part, Osmeña said the government must first audit its assets so that the government can determine its "true market value." Rife with controversy Pagcor, a government owned and controlled corporation created in 1977, operates 13 casinos in 10 major cities in the country, along with 28 satellite casinos, 24 VIP Clubs, and four Pagcor arcades. Its current chairman and chief executive officer is Cristino "Bong" Naguiat Jr., Aquino's former classmate at the Ateneo de Manila University. Under the Arroyo administration, Pagcor had been rife with controversy, including the extended appointment of Genuino and the alleged irregularity in the P21-million food purchase Pagcor made to feed policemen in rallies during his stint there as chairman. Genuino said the amount was just the accumulated value of all food purchases for policemen for the first half of the year. On Monday, the Philippine Daily Inquirer reported Ang as saying he will make a bid to acquire Pagcor with Malaysian billionaires Robert Kuok, Ananda Krishnan, and Francis Yeoh. Ang said, however, that he will not make the bid on behalf of San Miguel, which is owned by Aquino's uncle Eduardo "Danding" Cojuangco Jr. Ang said privatizing Pacgor could rake in as much as $10 billion for the cash-strapped Aquino government and make the Philippines one of Asia's "tiger economies." At a press briefing, presidential spokesman Edwin Lacierda said the Palace has not yet received any formal proposal from Ang. While Malacanang is "thankful" for Ang's "bullishness on the RP economy under the Aquino administration," Lacierda said Naguiat will still study whether $10 billion is a "fair evaluation" of Pagcor's value, among other concerns. He said there is no timeline yet for Naguiat to submit his recommendations. – with Kim Tan/VVP/RSJ, GMANews.TV