The Philippine government stands to add a whopping $10 billion, or 450 trillion pesos, to its coffers if it says “yes” to an offer made by a Filipino businessman and his Malaysian billionaire partners who are interested in buying the government-owned Philippine Amusement and Gaming Corporation (PAGCOR). President Benigno Aquino III Monday said he is seriously considering the proposal to sell PAGCOR after receiving the US$10 billion offer from San Miguel Corp. Vice Chairman Ramon Ang in partnership with Malaysian billionaires Robert Kuok, Ananda Krishnan, and Francis Yeoh. Ang earlier clarified that he is not making the bid on behalf of San Miguel, which is owned by Aquino's uncle Eduardo “Danding” Cojuangco Jr. Ang said the government could make use of the funds generated from the sale of PAGCOR to make the Philippines one of Asia's “tiger economies.” The offer immediately drew a guarded yet positive response from Aquino. “It is a very interesting proposal. But at the same time we have to study the proposal first,” Aquino told reporters at the sidelines of the 43rd Association of Southeast Asian Nations Foundation Day in the Department of Foreign Affairs. PAGCOR is a government owned and controlled corporation created in 1977 which operates 13 casinos in 10 major cities in the Philippines, as well as 28 satellite casinos, 24 VIP Clubs, and four arcades. It reported a net income of $640 million (29.62 billion pesos) in 2008. Under the terms of its franchise, half of PAGCOR's income goes straight to the national budget, with the balance going to host cities, a fund controlled by the president's office, and various taxes. Its current chairman and chief executive officer is Cristino “Bong” Naguiat Jr., Aquino's former classmate at the Ateneo de Manila University. It was formerly headed by Efraim Genuino, a known ally of former president Gloria Macapagal-Arroyo. Speaking to reporters, Aquino said his advisers are still reviewing PAGCOR's books and operations amid reports of irregularities in the agency. “There are so many allegations with regards to PAGCOR. You have to ensure that if you intend to sell something, it is at the best price we can get,” Aquino said. PAGCOR has been plague with controversies, especially during the time of former president Arroyo, including the extended appointment of Genuino as its head. In Malacanang, presidential spokesman Edwin Lacierda said they have yet to receive a formal proposal from Ang and his Malaysian partners. Lacierda said Malacanang is “thankful” for Ang's “bullishness on the RP economy under the Aquino administration” but that they will still study whether $10 billion is a “fair evaluation” of PAGCOR's value, among other concerns.
