Philippines gaming regulator PAGCOR has issued a notice to terminate the contract with Global ComRCI, the third-party auditor for licensed offshore gaming operations. Global ComRCI was hired in 2017 to track the revenues of licensed POGOs (Philippine Offshore Gaming Operators) and ensure they were paying the appropriate amount of tax. The auditor allegedly produced fraudulent documentation to win the PAGCOR contract and engaged in unlawful activities.
In its statement, PAGCOR revealed it had referred the matter to the Office of the Solicitor General (OSG) for the possible filing of administrative, civil, and criminal cases against the auditor. It will also “explore all legal remedies available” for the restitution of more than Php800 million (US$14.5 million) out of the partial amount released to Global ComRCI before the assumption of the current administration, plus damages.
The termination of the contract follows allegations that Global ComRCI produced fraudulent documentation to win the PAGCOR contract. The documentation included an allegedly fake bank certification from the New York branch of Soleil Chartered Bank (SBC) showing the auditor met PAGCOR’s capital requirements. Upon intensive evaluation, PAGCOR has determined the Third-Party Auditor to be in default of its obligations and prima facie evidence to have committed unlawful acts.
The Philippine gaming regulator informed that without an external auditor, PAGCOR would temporarily undertake auditing functions for its offshore licensees.
