Pagcor-Corporate Social Responsibility
I. PROFILE OF THE CORPORATION HISTORY Sometime in March 1992, a very young but energetic ABM Rogelio Y. Bangsil was sent to Fort Ilocandia Resort and Hotel to start the renovation for the future site of Casino Filipino-Laoag. Hand in hand with the construction, a massive promotional campaign was launched by his so-called “advance-party” composed of a handful of employees Casino Filipino -Laoag, which emerges as a world-class gaming destination with first-class service, is a favorite of tourists from Hongkong & Taiwan.
It truly lives up to its reputation as the “Jewel of the North”. When CF-Laoag opened towards the end of April 1992, ABM Bangsil was promoted as Branch Manager. He was joined by a newlypromoted COM in the person of Melquiades Parungao, Jr. , two newly promoted Gaming Area Managers,two Asst. Gaming Area Managers,a few Table Supervisors and a handful of support staff and office personnel. The branch operated on a single 6pm-2am shift with ten gaming tables and fifty (50) slot machines.
An extensive marketing strategy was launched extending as far as Baguio City to invite players to Laoag. For a newly-opened branch, the initial stage of operation entailed a lot of efforts on the part of both management and staff. Income from local players was not really significant. The opening of the Laoag City International Airport with flights from Taiwan gave a new ray of hope to CF-Laoag. These weekend flights brought in players who were ready to wager in US Dollars.
During its second year of operation, the branch suffered a major blow in its junket operation. This pulled down the operational status of the branch. This condition resulted to the closure of the casino in September 1993 only to reopen ten days later. Since then, the branch managed to survive and enjoy relatively modest net income. This spectacular feat gradually simmered down due to factors in the economic and political systems. A possible closure was again hovering over CF-Laoag.
In the early part of year 2000, the Waterfront Promotions Limited (WPL) came to the rescue for some time but later transferred to the Fort Ilocandia Promotions, Limited (FIPL). Towards the middle of 2003, the existence of CF-Laoag was threatened anew. This was because of the SARS (Severe Acute Respiratory Syndrome) scare that affected most Asian countries. Flights from China, Taiwan and Hong Kong, where most of the junket players come from, were restricted.
Due to the drastic reduction in the number of playing customers, FIPL proposed to downsize the casino operations for about two months, from June to July 2003 until such time that the SARS scare and the influx of junket players would normalize. CF-Laoag made a major turnaround towards the end of 2003. A total facelifting and renovation of the gaming areas had to be undertaken by the FIPL. In August of that year, the gaming tables were temporarily relocated to the Sierra Madre ballroom while the slot machines were lined upalong the corridors of the hotel.
Carpenters, masons, painters and technicians worked round-the-clock to finish the project before the end of the year. CF-Laoag transferred to the newly transformed venue on December 25, 2003, just in time for the arrival of players from China, Taiwan and Hong Kong. Everyone was impressed by the chandeliers that hang over the main gaming area, the colorful mini bulbs that twinkled on the outer panels of the ceiling and the congregations of angels that adorned the mini domes above the gaming tables.
Six VIP areas depicting American, British, French, Egyptian and Chinese settings were also impressive. Players and guests, even PAGCOR officers, who have seen other casinos abroad commented that the VIP rooms are even cozier than those in the US, Macau, Australia and elsewhere. At present times, Philippine Amusement and Gaming Corporation (PAGCOR) is the Philippines third largest contributor of revenue after the Tax and Customs Authority.
It is a government owned and controlled corporation first established in by Presidential Decree 1067 and entered itself in a contract with Philippine Casino Operators Corporation (PCOC) in operating the floating casino in the Manila Bay in 1977. However, gutted by fire in 1979, for which reason, PAGCOR shifted its operations to land-based casinos and entered into another contract with PCOC for the management of a casino at the Provident International Resources Corporation (PIRC) building on Imelda Avenue, Paranaque City, Metro Manila, Philippines.
Then under the Presidential Decree 1869 in 1983, it was mandated as the sole government corporation to conduct and establish gaming pools and casinos. In 1986 it was reestablished by H. E. then Pres. Corazon Aquino’s government with New PAGCOR as its short name to help raise the government funds; appointing Norberto Quisumbing as its first Chairman and later on the former Development Bank of the Philippines chair Alicia LL. Reyes as its Chair and CEO. She was succeeded by Ephraim Genuino under the appointment by H. E. Pres. Gloria Macapagal-Arroyo in 2001.
The firm operates 13 Casinos and several VIP slot clubs in major cities across the country. It also sees and regulates more than 180 bingo parlors as well as e-games cafes across the country. The company employs more than 11000 employees. In June, 2007 PAGCOR had its most significant piece of legislation with the passage of Republic Act 9487 granting the state-run gaming firm another 25 years to regulate and operate games of chance, to issue licenses, and to enter into joint venture, management, or investment agreements with private entities.
PAGCOR is under the Office of the President of the Philippines. As of December, 31, 2009, the Pagcor Board is composed of Chairman/CEO – Efraim C. Genuino, President/COO – Rafael Butch Francisco, Directors – Imelda Dimaporo, Philip G. Lo, Manuel C. Roxas and Susana Vargas (ex-officio) and Corporate Secretary – Carlos R. Bautista. On July 02, 2010, Cristino L. Naguiat, Jr. was sworn in as its new Chairman. On July 19, 2010, Jorge Sarmiento was named as its new President & COO along with other new members to the Board, namely: Enriquito M.
Nuguid, Eugene D. Manalastas and Jose S. Tanjua. Vision We will captivate our customers with a world-class gaming and entertainment experience, improved infrastructure, more competitive facilities, and a highly professionalized manpower; We will showcase to the world the exceptional Filipino way of serving customers; We will be a pillar for national progress by instilling integrity as the backbone of our regulatory duties, investing in the education of Filipinos, and promoting Philippine tourism, culture and arts.
Mission ? ? To achieve operational excellence, revenue growth and competitive advantage. To attain and enforce a regulatory framework that preserves the integrity and propels the development of the Philippine gaming industry. ? To continue being a responsible and responsive partner of the Philippine government in its nation-building programs. ? To actively participate in fforts of the tourism sector to transform the Philippines into an exciting R and entertainment haven for local and foreign travelers alike. Nature of Business PAGCOR is a hundred percent government-owned and controlled corporation created to regulate, authorize and license all games of chance authorized by law in the Philippines, generate revenues for the Philippine Government’s socio-civic and national development programs, and help promote the Philippine tourism industry.
According to Sec 10 of Presidential Decree no. 1869 known as the PAGCOR Charter, the said corporation has the rights, privileges authority to operate and license gambling casinos, gaming clubs and other similar recreation or amusement places, gaming pools, i. e. basketball, football, bingo, etc. except jai-alai, whether on land or sea, within the territorial jurisdiction of the Republic of the Philippines.
Provided, that the corporation shall obtain the consent of the local government unit that has territorial jurisdiction over the area chosen as the site for any of its operations. Furthermore, the operation of slot machines and other gambling paraphernalia and equipment, shall not be allowed in establishments open or accessible to the general public unless the site of these operations are three-star hotels and resorts accredited by the Department of Tourism (DOT) authorized by the corporation and by the local government unit concerned.
There are also restrictions on the operations of the corporation. Their power and authority to authorize, license and regulate games shall not extend to the ff. : ? Games of chance authorized, licensed and regulated or to be authorized, licensed and regulated by, in, and under existing franchises or other regulatory bodies; ? Games of chance, games of cards and games of numbers authorized, licensed, regulated by, in, and under special laws such as Republic Act No. 922. ? Games of chance, games of cards and games of numbers like cockfighting, authorized, licensed and regulated by local government units. The conduct of such games of chance, games of cards and games of numbers covered by existing franchises, regulatory bodies or special laws, to the extent of the jurisdiction and powers granted under such franchises and special laws, shall be outside the licensing authority and regulatory powers of the PAGCOR.
PAGCOR’s Income PAGCOR derives its income from the winnings of table games, slot machines and in-house bingo operation of the agency’s different gaming properties. The corporation also gets substantial income from other sources from its regulated gaming activities such as the private licensed casinos, poker operations, commercial bingo operations, E-games and others. In 2011, PAGCOR’s total revenue reached P36. 65 billion, which is greater by P5. 19 billion or 16. 52% to its total income of P31. 46 billion in 2010.
In accordance with its Charter and other governing laws, PAGCOR earnings are distributed as follows: 5 percent of winnings goes to the BIR as franchise tax; 50 percent of the 95 percent balance goes to the National Treasury as the National Government’s mandated income share; 5 percent of the balance after the franchise tax and the National Government’s mandated income share goes to the Philippine Sports Commission for financing of the country’s sports development programs; 1 percent of the net income goes to the Board of Claims, an agency under the Department of Justice, which compensates victims of wrongful detention and prosecution; Cities hosting PAGCOR casinos are given fixed amount for their respective community development projects; Funds for implementation of vital laws such as the Early Childhood Care and Development Program and Sports Incentives and Benefits Act; Remittance to President’s Social Fund Remaining balance of income goes to the projects related to the upliftment of the quality of education through the construction of classrooms and school buildings, assistance for the promotion of the country’s health programs, and the Pasig River Rehabilitation project II.
Organizational Chart How does PAGCOR’s organization works? All policies for implementation and general directions to be taken by PAGCOR are under the responsibility of a five-man Board of Directors duly appointed by the President of the Philippines. Following are the Board Members chosen by President Benigno Simeon Aquino III to ensure that PAGCOR’s administration during his term will subscribe to his commitment to transparency, integrity and good governance: Hon. Cristino L. Naguiat, Jr. Chairman & Chief Executive Officer Jorge V. Sarmiento President & Chief Operating Officer Eugene D. Manalastas Director Enriquito M. Nuguid Director Jose S. Tanjuatco Director
The day-to-day operations of PAGCOR in its Corporate Offices and Casino Filipino Branches are manned by 11,369 employees (data as of January 31, 2011). Aside from having its internal auditing group, PAGCOR’s operations are also subject to the scrutiny of the government’s watchdog, the Commission on Audit (COA), which ensures – among others – that every centavo earned and spent by the corporation are fully accounted for. III. Socioeconomic Aspect Government PAGCOR (Philippine Amusement and Gaming Corporation) in line with their “corporate social responsibility” has been doing different projects raising the concern of the public, of the government as well as promoting their name too.
The said corporation has done a project in cooperation with the Department of Education (DepED) allocating a fund of Php 1 billion for the construction of 1,000 classrooms nationwide. This has been the first time that PAGCOR has set aside such huge fund for a single project intended to help a government sector. This project “Matuwid Na Daan Sa Silid- Aralan” was intended to help the government address the perennial problem of classroom shortage. PAGCOR has come up with this project for this problem of the education sector currently stands at 70 582 nationwide. The said project was PAGCOR’s way of helping the Philippine government in its campaign to improve the quality of education in the country.
Also, this is not just a big help in the part of the government but in the part of the poor families and students dreaming for a good education too. Included in the Php 1 billion fund is PAGCOR’s Php 65 million funding assistance to DepED and Gawad Kalinga Foundation, Inc. for the construction of 100 learning centers in different communities nationwide. This is to help communities with no learning centers of their own and to help parents who can’t send their children to school. Under the said project, Gawad Kalinga will handle the construction of the classrooms while the Department of Education will manage the facilities once the classrooms are done. DepED will manage the said facilities in cooperation of the local government unit.
PAGCOR has also partnered with TESDA and allotted an initial of Php 100 million funds for the retrofitting of TESDA’s existing wood working facilities. Included in their projects in helping the government,PAGCOR and Travellers International fund the construction of a new public school in Mandaluyong. Due to this project,PUBLIC elementary and high school students of Barangay Addition Hills in Mandaluyong City will have a better chance of finishing their basic education after the Philippine Amusement and Gaming Corporation (PAGCOR) and Travellers International Hotel Group, Inc. (operator of Resorts World Manila) committed to fund the construction of an integrated public school there.
Travellers, as part of its Entertainment City investment obligation, has also allocated approximately P60 to P80 million for the construction of the Mandaluyong Addition Hills Elementary School in Mandaluyong City’s most populated barangay. The new school will have 2 four-storey buildings with 40 classrooms and 16 comfort rooms. It can accommodate up to 2,000 elementary and high school students. Associated with PAGCOR’s mission on their corporate social responsibility,the state-owned corporation developed the “PAGCOR Feeding Program”. This project was made possible in coordination with the Department of Social Welfare and Development (DSWD) and the Department of Education (DepED), together with partner schoolbeneficiaries. This program provided balanced meals to undernourished children from targeted day-care centers and public elementary schools in selected areas.
The said project aimed to supplement existing government feeding programs and to help address the malnutrition situation in the country. These are some ways on how PAGCOR stretched their helping hand to help the Filipinos and the Philippine government itself. These are also the corporation’s ways to ease the burdens of our government. Community “To continue being a responsible and responsive partner of the Philippine government in its nation-building programs. ” This is one of the missions of PAGCOR. As stated in its mission, PAGCOR is one with the Filipino in this journey. PAGCOR hopes to be a dynamic partner of our government in changing the course of Philippine history towards national development and progress.
The corporation facilitates programs for the progression of the Filipino Community. In order to attain its mission, PAGCOR, held the following projects: PAGCOR distributes relief goods to 10,000 families affected by Habagat flooding, align with this project, PAGCOR distributed relief packs to 2,000 families in Barangay Baseco, Tondo. The said state-owned gaming agency also gave relief goods to 3,000 families badly hit by the flooding in Tumana and Nangka, Marikina City, Sta. Ana, Manila and Malabon City. In the provinces, PAGCOR also conducted relief operations for a total of 5,000 families in Concepcion, Tarlac, Guiguinto, Bulacan,Rosario, Cavite, Taytay, Rizal and San Isidro, Tanay, Rizal.
PAGCOR Chairman and CEO Cristino Naguiat, Jr. said this is only the first tranche of the agency’s Habagat relief operations. “We have allocated a total budget of P8. 14 million for our relief operations. We hope to be able to give help to at least 20,000 families. There were so many of our countrymen who were badly affected by this recent flooding. Itong aming relief operations ang paraan ng PAGCOR para matulungan ang ating mga kababayan na labis na naapektuhan ng kalamidad na ito. ” PAGCOR, in its mission of reaching out the Filipino community,also reached out to the indigent and impoverished by providing free medical and dental services via its medical missions.
These missions, which were mostly conducted in depressed areas and those battered by calamities, aim to bring government and the company closer to its constituents by providing basic health services. Furthermore, PAGCOR, in coordination with the Department of Social Welfare and Development (DSWD) and the Department of Education (DepED), developed the “PAGCOR Feeding Program” to supplement existing government feeding programs and to help address the worsening malnutrition situation in the country. This project was made possible with partner school-beneficiaries, which provided balanced meals to undernourished children from targeted day-care centers and public elementary schools in selected areas. PAGCOR has been implementing projects that are very helpful in our very own Philippine community.
PAGCOR is doing their best in reaching out the depressed areas and the indigenous to let feel that PAGCOR isn’t all about gambling, but also ready to stretch their hand to those communities in need. Employees More health benefits for PAGCOR employees. Philippine Amusement and Gaming Corporation (PAGCOR) Chairman Efraim Genuino announced yesterday that the agency’s 10,000 employees would soon be receiving a “bigger and better health care benefits package” following a very productive year. Genuino noted that PAGCOR’s profits rose 21 percent in October despite the economic slump caused by the Sept. 11 terrorist attacks in New York and Washington. This is my way of thanking, on behalf of President Arroyo, the 10,000-strong PAGCOR workforce which worked doubly hard to break revenue records this year despite the debilitating effects of a worldwide economic crisis,” Genuino said. It will be recalled that one of Genuino’s first acts as Pagcor chief was to increase the salaries of all personnel. Prior to his appointment by the President, employees lamented that their salaries “had remained stagnant for 15 years. ” The new health care program will “substantially increase the present hospitalization budget which employees and officers can avail of. It will also provide generous subsidies for maternity cases and ensure a faster processing system of all health claims”, Genuino said.
Furthermore, Genuino has ordered the setting up of a state-of-the art health infrastructure program through the establishment of modern outpatient clinics complete with a laboratory, an x-ray room and pharmacy. Dental clinics will also be put up at all casino branches and at the PAGCOR corporate office. Mentioned above are the PAGCOR’s ways of returning the favor to their employees. These are also the corporation’s way of somehow thanking their beloved employees. However, these are not just programs for the employees but for the corporation itself too. Due to these projects, PAGCOR can be assured that their employees will be satisfied from their benefits. Environment PAGCOR takes its corporate social responsibility to another level as it goes green and supports projects about environmental protection.
In tandem with the National Convergence Initiative (NCI) Project, PAGCOR is funding and actively undertaking reforestation and related activities not only in our remaining forests but also in various locales under threat of erosion and degradation. It also supports the “E-Kawayan” project which aims to regenerate bamboo plantations nationwide and exploit the many uses of bamboo for industrial purposes. Just recently, PAGCOR turned over P31million in financial support for Hi-e-Kawayan project of Alaminos, Pangasinan. This will help in reviving bamboo culture, reforest bamboo growing regions for environmental protection. The said project complements the Department of Environment and Natural Resource’s (DENR’s) National Greening Project (NGP) since it is set to reforest 322 hectares of land with bamboo plants which would lead to erosion prevention and slope protection in the area.
The said corporation also provides funds for turning illegally cut logs from areas in Mindanao that had been pummeled by the recent Typhoon Sendong into chairs, tables and blackboards that will be given to public schools. Also, PAGCOR was into recycling as it launched a project converting used slot machine stands into school desks which are donated to six public schools. Lastly, PAGCOR expressed support to the Kapit Bisig Para sa Ilog Pasig (KBPIP), a project spearheaded by the ABS-CBN Foundation, together with the Pasig River Rehabilitation Commission and Department of Environment and Natural Resources. This project aims to rehabilitate and clean the Pasig River from 2009-2015 with the Estero de Paco as its pilot site.
These projects only proved that PAGCOR is not just a corporation but a environment-concerned one. These are the ways on how they promote the preservation and restoration of our environment. Economy Philippine Amusement and Gaming Corporation or PAGCOR, with its chain of casinos and other businesses, contributes much to the Philippine economy. From their large income, the tourists they attract, the jobs they give to a number of Filipinos and up to the investors they bring into the country, they only prove that they are not just about gambling but an asset to the country’s economy. Casino is one of the places where tourists go here in the Philippines whether they came in on purpose of doing so or to just explore what the country can offer.
Large number of customers and gamers, both foreigners and Filipinos, also means large amount of income not just for the corporation itself but also to the country. Just last year, 2011, PAGCOR reported whooping P36. 65 billion total revenue, which is P5. 19 billion more than its income the year before, 2010. Tourist dollars are also coming into the country together with these visitors from different places. PAGCOR currently operates 13 casinos in different places all over the country like Metro Manila, Tagaytay City, Pampanga, Cebu, and others. With this, they already gave about 12,000 jobs to the Filipinos which will soon be increased with the upcoming projects of the company. This, already, is a big help to the country’s worsening problem on employment.
They are also bringing foreign investors in the country together with the rise of the “Entertainment City Manila” or simply “PAGCOR City” in the year 2016. It is Asia’s Las Vegas-like gaming and entertainment complex that PAGCOR proposed way back in April 2008 to offer on 8 km? of land on the reclamation area of Manila Bay, Philippines. The objective is to capture at least 10 percent of the annual $115-billion gaming revenue in the world. According to vice president Jejomar Binay, “The project will be a big boost to the economy. It will bring investors and visitors and this will provide employment and livelihood opportunities for thousands of Filipinos. ” noting that the project will provide millions of Filipinos with high-paying jobs without leaving for work abroad.
It is also believed that this project will bring even more tourist in the country as it will not cater only the gaming aficionados but other facilities will also offer other forms of wholesome family entertainment which will encourage tourists to go together with their families. PAGCOR helps the economy more than we give them credit for. Because of the common connotation that comes with their name like ‘gambling’, ‘1-billion coffee expenditure’ and the different cases filed against the officials of the corporation we failed to see the benefits they brought to the country. IV. Pictures “MATUWID NA DAAN SA SILID PAARALAN” PROJECT PAGCOR, in cooperation with the Department of Education (DepED), has allocated a P1 billion funding for the construction of 1,000 classrooms nationwide. PAGCOR distributes relief goods to 10,000 families affected by Habagat flooding Reaching places like Tondo and Sta.
Ana, Manila; Marikina City; Malabon City; Concepcion,Tarlac; Guiguinto, Bulacan; Rosario, Cavite; Taytay, Rizal; and San Isidro, Tanay, Rizal. MEDICAL / DENTAL MISSIONS PAGCOR reaches out to the indigent and impoverished by providing free medical and dental services via its medical missions. PAGCOR FEEDING PROGRAM PAGCOR, in coordination with the Department of Social Welfare and Development and the Department of Education, developed the PAGCOR Feeding Program to supplement existing government feeding programs and help address the worsening malnutrition situation in the country. PAMASKONG HANDOG PROJECT The Pamaskong Handog project is an annual Christmas gift-giving project of PAGCOR which is intended to bring joy to the less fortunate at Christmas time. PNOY BAYANIHAN” PROJECT PAGCOR has partnered with the DepED, Department of Environment and Natural Resources (DENR) and the Technical Education and Skills Development Authority (TESDA) for the Pnoy Bayanihan project which aims to convert confiscated logs from illegal logging into school chairs. CONVERSION OF USED SLOT MACHINE STANDS TO SCHOOL DESKS PAGCOR also converts hundreds of its used slot machine stands into school desks which are being donated to different public schools that are in need of school chairs. V. References More health benefits for Pagcor Employees. (2011, November 24). The Philippine Star, p. 3. Cruz, J. D. (2012, June 24). Pagcor goes green. Business Mirror, p. 5. Cruz, J. D. (2012, June 24). Pagcor goes green. Business Mirror, p. 3. http://pcij. org/blog/wp-docs/RA9487. pdf http://www. pagcor. ph/social-responsibility. php http://www. blog. pagcor. ph/ http://www. pagcor. ph