P-Noy’s ‘Daang Matuwid’ and Pagcor’s Naguiat

**tomboy** · February 25th, 2012 04:46 AM

Para sa mga nabola ni noynoy.

Gagamitin ko nga ito joke sa isang government agency......."Wala ba industry practice dito" ahhaahhahah

P-Noy

Japanese billionaire and pachinko king Kazuo Okada and American gambling tycoon Steve Wynn used to be close business associates and are now engaged in a bitter legal fight. President Aquino and former President Gloria Macapagal-Arroyo used to be close political allies (maybe not so close) but are now the bitterest of enemies, engaged in even more deadly legal battles.

In the Okada-Wynn battle, Philippine Amusement and Gaming Corp. and its chair Cristino Naguiat Jr. have gotten caught in the crossfire, as Wynn has charged Okada with making illegal payments to him (Naguiat) and other Pagcor officials over a 3-year period. In the Aquino-Arroyo war, the latter is not only in jail (charged with electoral sabotage), but her “midnight” appointee Chief Justice Renato Corona is also standing trial on impeachment charges—and it can be argued that he, too, is caught in the crossfire.

Both Naguiat and Corona have averred their innocence, of course. What is remarkable, though, is that P-Noy has pronounced Naguiat innocent, with the same lightning speed with which he pronounced Corona guilty, in both instances seemingly satisfied with just hearing one side of the story (Corona still has to present his evidence). Such a rush to judgment in both cases is what makes me uncomfortable.

It must also be noted that the charges regarding Naguiat’s involvement in what are alleged to be illegal payments were based on a “multi-month” investigation report to the Wynn board on Feb. 18, 2012. The inquiry, which was commissioned on or about Oct. 29, 2011, was conducted by the law firm of former FBI Director Louis Freeh and involved conducting dozens of interviews (including one with Okada) and reviewing “thousands of documents and e-mails.”

Contrast this attention to detail with the impeachment charges against Corona which were prepared over a weekend and sent to the Senate after a 7-hour process of approval.

Among the improprieties detailed by the Freeh report, and carried by the international press, were the more than $110,000 worth of payments made on 36 separate occasions (including, by the way, a $4,642 bill run up by then President Arroyo’s husband Mike Arroyo, who must have been there under Pagcor auspices) for “luxury lodging, extravagant dinners, shopping, and cash to spend” for both the former and current Pagcor chairs, as well as the occasion when “Okada arranged for Pagcor Chairman Naguiat, his wife, his three children, his nanny, other senior Pagcor officials, one of whom also brought his family, to stay at Wynn Macau.”

With regard to the latter incident, the Freeh report goes on to say how Okada and his associates “refused to provide the Wynn Macau management with the name of Chairman Naguiat and tried to conceal his identity (he was registered as ‘Incognito’).” It adds: “At Okada’s … direction, Chairman Naguiat and his entourage were provided with the most expensive accommodation, food, and star treatment. In addition, Okada’s associates asked that each guest be provided with $5,000 cash advance during their stay.” Moreover, after the Naguiat group had left, Okada aides asked the hotel to reduce the bill of charges that had been run up because they feared an investigation and did not want their principal to get into trouble (the request was refused).

If the reader is interested in what is meant by “the most expensive accommodation, food and star treatment,” a Bloomberg news headline tells it all—“Okada Put Philippines Gambling Official in $6,000 Macau Suite, Wynn Says”—and goes on to describe the suite as the most expensive at Wynn Resorts Macau, with a 700-square-meter floor area and known as “Villa 81.” The amenities include three master bedrooms, a private casino and a beauty salon. Bloomberg even provides a video of the $6,000 suite. The international press has really gone to town on this one.

Naguiat denies that he got cash gifts and claims that he returned others (e.g., a Chanel bag). As for the rest of the perks, these were dismissed as SOP, i.e., “industry practice.”

The President has apparently accepted Naguiat’s explanation, ignoring the important distinction between your run-of-the-mill casino owner/operator and the head of a government agency like Pagcor that not only runs casinos but regulates, authorizes and licenses gambling operations. This is a distinction that the international press does not miss, or it wouldn’t have made such a big issue of the
Pagcor involvement in the Okada-Wynn battle. Neither has the Freeh report, which apparently concludes that Okada et al. “appear to have engaged” in violation of the US Foreign Corrupt Practices Act in the Philippines (and maybe also in South Korea).

But the real kicker is in the findings of an independent investigation and risk assessment of the gaming industry in the Philippines commissioned by the Wynn Resorts Compliance Committee in January 2011, as contained in the Wynn complaint against Okada: “a) Official corruption in the Philippine gaming industry is ‘deeply ingrained;’ b) Doubts that newly elected President Aquino’s stated plans for reform would eliminate corruption in the gaming industry; c) The country’s legal/regulatory frameworks were not closely aligned with American compliance and transparency standards; and d) Despite a general refusal by witnesses to discuss Okada’s role in the Philippines (many refused to comment), other information created the suspicion that persons acting on Okada’s behalf had engaged in improprieties.”

So goes the “Daang Matuwid” 20 months into P-Noy, and 26 years after our Edsa Revolt.

**shadow** · February 25th, 2012 09:03 AM

Ikaw rin ba yun anti penot sa ibang forums? Parehong pareho mga post eh..paulit ulit Lang

Sino ba binoto at bakit galit ba galit ka, meron ka bang relatives na namatay dahil Kay penot or meron babaeng iniwan ka dahil sumama Kay penot?

Saan ba galing ang galit mo Kay penot? Para naman maintindihan namin

**yebo** · February 25th, 2012 10:20 AM

industry practice naman talaga yan. yung binigay ng macau casino sa pagcor officials, tawag dun "reciprocity". pag pumupunta din ang foreign casino officials dito sa pinas ganun din ginagawa ng mga casino operators dito.

isa pa, punta ka sa resorts world o kahit saang malaking casino sa pinas, ang mga high rollers dun free hotel, free lunch, free dinner, etc etc. pati first class plane tickets free. kahit $10,000/night pa yan bale wala yan sa ipapatalo sa casino ng high rollers. ang reasoning kasi eh "talo na nga yung tao pagbabayarin mo pa, dapat give them a good time para babalik sila". and that is true in ALL casinos in the whole world.

yung mga nakikita nyo na naglalaro sa casino sa main floor mga small time lang yun. yung mga high rollers nasa taas, show money mo dun at least 1M. nakapasok na ako kaya alam ko (sabit lang po ako sa isang high roller).

**chua_riwap** · February 25th, 2012 02:30 PM

noong una, parang "inaabsuwelto" ng palasyo si naguiat.
now, paiimbestigahan na ni Pnoy. daming umalmang anti PNoy eh (isa na siguro si tomboy.......

)

pero knowing KKK si naguiat.....lets' see.

**CoDer** · February 25th, 2012 02:39 PM

Ay Tomboy panahon pa ni Gloria na award yang license ni Okada. Ano pa ang dapat i bribe kung tapos na ang awarding ng license? Kung di ka ba naman sira oo.

Yung accomodation eh tama sila dun, industry standard yan.

Bat binalik ni Naguiat ang Chanel bag kung corrupt nga sya?

**CoDer** · February 25th, 2012 02:42 PM

Originally Posted by chua_riwap

noong una, parang "inaabsuwelto" ng palasyo si naguiat.
now, paiimbestigahan na ni Pnoy. daming umalmang anti PNoy eh (isa na siguro si tomboy.......

)

pero knowing KKK si naguiat.....lets' see.

Wag na dapat bulabugin ng mga pulitiko ang project na yan, hayaan nilang mag away ang kano at hapon na dating mag partner. $2B yan! di dapat ma purnada yan.

**chua_riwap** · February 25th, 2012 02:59 PM

got this from tulfo's column......

http://newsinfo.inquirer.net/151363/...eraldas-ambush

If Cristino Naguiat Jr., chair of the Philippine Amusement and Gaming Corp., returned to the gift-giver the Chanel bag meant for his wife, then he was not guilty of bribery.

As to the other claim that he and his family were provided free accommodations in Macau during their visit to Asia’s gambling capital, there was also nothing wrong with it. Gaming operators—and Naguiat as Pagcor chair is one—receive reciprocal perks from their counterparts when they visit gambling capitals.

That’s the reason the accusation against then First Gentleman Mike Arroyo staying in a $20,000 suite in Las Vegas years ago did not hold water—because the freebie was sponsored by then Pagcor Chair Efraim Genuino. Genuino was given the free suite by his counterparts in Las Vegas. In turn, he passed this on to Arroyo who was going to watch a fight of Manny Pacquiao.

Perks and privileges to gaming officials are an industry practice.
It’s like an airline owner and his family given first class accommodations by another airline as a matter of courtesy.

* * *
It would have been different if Pagcor were purely a regulatory body so its officials who enjoy perks and privileges from casino owners would be committing graft. But apart from being a regulatory agency, Pagcor also runs casinos, which makes it a gaming operator.

In other words, there is nothing wrong with a gaming operator being wined and dined by his counterparts in other countries because it’s a practice in the industry.

What’s the solution?
Make Pagcor purely a regulatory body and the perks and privileges its officials now enjoy will disappear.

**Monseratto** · February 25th, 2012 06:43 PM

By now you would be hearing lawbreakers..este lawmakers demanding an investigation in aid of election...este legislation into the bribe and a halt to the construction of the US$2 BILLION Manila Bay project. But their too busy with the impeachment...too bad.

Even if the charges maybe false, Nagiat should resign since he has become extra baggage to PNoy's Tuwid na Daan... He might be investigated by the FBI for violating Federal Laws against US companies bribing foreign officials.

Iniimbestigahan na ngayon ng awtoridad dito sa Amerika ang bintang ng Wynn Resorts na lumabag ang direktor nilang si Kazuo Okada sa Foreign Corrupt Practices Act nang ‘di umano'y nanuhol ito ng mga opisyal sa Pilipinas para makapagtayo ng sarili niyang casino sa ating bansa.

Sisilipin ng US Securities and Exchange Commission ang paratang ng casino giant na nagpaluwal ng mahigit $100,000 si Okada para suyuin ang dati at kasalukuyang pinuno ng Pagcor.

Nauna dito, nagsampa ng asunto ang Wynn Resorts laban kay Okada sa district court of Nevada.

Kalakip ng demandang ito ang resulta ng internal investigation na isinagawa ng kompanya.

Dito nakasaad na sa mga pagpupulong ng board members ng Wynn, ibinibida ni Okada na hindi siya puwedeng pagbawalan ng kompanya na magbigay ng mamahaling regalo sa mga opisyal ng gobyerno sa Pilipinas dahil ganito raw ang kalakaran ng pagnenegosyo sa ating bansa -- bagay na ikinagulat ng ibang miyembro ng board, dahil kay Okada na rin daw nanggaling na wala nang katiwalian sa Pilipinas dahil bago na ang nakaupong administrasyon.

Pero pagkatapos sabihin ito, giniit pa rin ni Okada na kakailanganin pa rin nilang kumuha ng isang fixer na manunuhol ng dapat suhulan para umarangkada ang kanilang proyekto.

Nakasaad din sa dokumento na nang patirahin umano ni Okada si Pagcor chairman Cristino Naguiat sa $6,000-a-night hotel suite na ito sa Wynn Macau kasama ang kanyang pamilya at isang yaya, binigyan din nila ng luxury accommodations ang ilang senior Pagcor officials na nagsama rin ng pamilya.

Kahapon nakipagkita ang isa sa mga abogado ng Wynn sa ilang criminal prosecutor ng US Department of Justice. Nadia Trinidad, Patrol ng Pilipino, San Francisco

**Monseratto** · February 25th, 2012 07:07 PM

I think the point is Okada is not a goverment gambling official but a private individual. And there are laws in the US which bans such practice. Wynn's is a US registered company. Iba usapan kung private companies ang wining and dining customers at goverment regulators.

And this news is not a local matter were Pnoy can hide from...

But the real kicker is in the findings of an independent investigation and risk assessment of the gaming industry in the Philippines commissioned by the Wynn Resorts Compliance Committee in January 2011, as contained in the Wynn complaint against Okada: “a) Official corruption in the Philippine gaming industry is ‘deeply ingrained;’ b) Doubts that newly elected President Aquino’s stated plans for reform would eliminate corruption in the gaming industry; c) The country’s legal/regulatory frameworks were not closely aligned with American compliance and transparency standards; and d) Despite a general refusal by witnesses to discuss Okada’s role in the Philippines (many refused to comment), other information created the suspicion that persons acting on Okada’s behalf had engaged in improprieties.”