The Philippine Amusement and Gaming Corp. (Pagcor) said it is terminating the contract of Global ComRCI as third-party auditor for licensed offshore gaming operations.
In a statement, Pagcor said on Thursday, March. 9, the gaming regulator issued a notice to terminate the consultancy contract with Global ComRCI after “careful investigation.”
Moreover, Pagcor has endorsed the matter to the Office of the Solicitor General (OSG) for the possible filing of administrative, civil and criminal cases against Global ComRCI.
The agency also said it will explore all legal remedies available to run after Global ComRCI.
Pagcor said it wants to restitute more than P800 million of the partial amount released to Global ComRCI prior to the assumption of the current administration as well as damages it has caused to the government gaming regulator.
Since September last year, the new Pagcor management had been conducting extensive reviews of its contracts, among which is with Global ComRCI.
“Upon careful evaluation, Pagcor has determined the third-party auditor to be in default of its obligations and prima facie evidence to have committed unlawful acts,” Pagcor said.
Nevertheless, under the principle of due process, Global ComRCI had been given an opportunity to be heard, Pagcor said.
“Pagcor would like to reiterate that contrary to previous reports, it has not yet paid the contract amount of P6 billion to Global ComRCI,” Pagcor said.
“Moreover, no payment has been made by Pagcor in the past four years due to the shortfall from the minimum revenue stipulated in the contract,” it added.
In the absence of an external auditor, Pagcor said it will temporarily undertake auditing functions for its offshore licensees until it is able to contract another third-party auditor through a transparent and strict bidding process.
“Pagcor is firm in its commitment to uphold the integrity of the gaming industry in the country so that all revenues from regulated gaming will continue to support the government’s nation-building efforts and uplift the lives of Filipinos,” the agency said.
