A Gaming Casino in Cagayan de Oro City?

SOME thought of the business community and civil society over the weekend on the return of a gaming casino in our city deserves a review by both our elected local and national legislators of Cagayan de Oro and Misamis Oriental.
The public pulse is whether we host the casino right smack in the city proper or find alternative location for the casino in some areas away from the residential zones, schools and places of worships and not just in any 200 meters distant radius as prescribed by law.
An economic zone in Misamis Oriental is just 21 kilometers from City Hall and about 35 minutes travel time by car. It is an enterprise zone reserved but which is not fully occupied by manufacturing locators.
The zone was created by Presidential Decree No. 358, which amended to the original P. D. 253 otherwise known as the Philippine Veterans Industrial Development Corporation or PHIVIDEC which is a good alternative to host a casino and other leisure locators.
As a backgrounder, P. D. 358 was promulgated in August 13, 1974 during the incumbency of the late President Ferdinand E. Marcos when the Philippines were under Martial Law. It has the vision for the industrialization and economic development of southern Philippines through job creation both for retired military officials and the growing manpower force in the technical field of engineering and labor.
Inspired perhaps by the success of the Iligan Integrated Steel Mills in the early 70’s, Marcos has the PHIVIDEC charter drafted designed for industrial and manufacturing activities in Misamis Oriental with the military in mind as beneficiary.
During those years, nothing of the information technology (IT) or electronic gaming (E-Games) was then heard off when P. D. 358, was promulgated. In comparison today, the information technology (IT) form the backbone of doing business worldwide through fast and efficient transmission of data and communication infrastructure that shape business, banking and industries.
It is the efficient technology that powers the Internet and Business Outsourcing or BPO. Many of the Java scripts and other configurations in the data transmissions connecting cyber terminals for inter active gaming is made faster at a mouse click. Gaming and inter-active gambling generates Billion Dollars yearly revenues from countries that legalized gambling operations through the net.
Since Misamis Oriental is linked to the BIMP-EAGA economic sphere and people’s mobility. This rationale can be a major hub for legalized gambling and other leisure economic activities to be encouraged in Northern Mindanao. At the moment, only PHIVIDEC can provide at a lesser cost with a faster electronic transactions due to the existence of available infrastructures to host secured data based communication facilities.
Looking back on the intricacies and the web of the Marcos Presidency whose powers and authority during Martial Law years was then back up by the military, it was imperative and with a sense of gratitude that Presidential Decree 358, was conceived to repay and reward the military establishment, who keep the former President in power as the major PHIVIDEC beneficiary.
The decree under Section 6, thereof, requires that only “retired military officials or veterans with educational qualifications in law and finance who may be appointed to the PHIVIDEC board to exercise corporate powers”.
Their charter also provides that 50 % of its revenues must be flowed back to the corporation to pay for loans amortizations acquired by the industrial estate which was guaranteed by the national government at the time of its inception. The other 50% was for the operational and maintenance cost of the estate.
How much of the 50% was remitted to the national government from 1974 up to the fiscal year 2011? This could perhaps be subjected to COA audit or Congressional inquiry if the estate is making money or was it wasting the people’s money? Should there be a need to review its charter for fine tuning to the economies of our time?
PHIVIDEC under Section 7 of their charter has the power to issue bonds or incur indebtedness. Can the economic zone show proof of steady economic development through new investment locators and reflect a net profit in its financial statement? If not, can the existing zone be able to maximize its economic potentials and how?
Through some amendments to its charter, other economic undertakings can be pursued by the economic zone particularly on tourism, leisure and amusement. It has more than 3,000 hectares of land area allocated for its development with absolute power granted by its charter to expropriate public and private lands covered by the zone. Today, less than 60% of its land properties are economically productive or developed and by 2024, the life expectancy of the corporation will expire.
Today, inter active gambling and e-games are part of the casino business which is a natural tourism attraction to lure the tourist market to come to the Philippines. Economic zones are good locations for the infrastructures of gambling activities. These are out of the residential areas, far from schools and place of worships.
The autonomy of economic zones from local government taxation and supervisions gives more flexibility for gambling casinos to operate without tax for two years or more guaranteed by the Government through the BOI Omnibus Tax Incentive laws.
This has been pioneered and proven by the Cagayan Economic Zone Authority (CEZA) in northern Philippines which is hosting 2 gambling casinos and Jai Alai games. Gambling as leisure should not be opposed but instead supported by the community through zoning location. It has its pros and cons but at the end it can create the economic activity to provide jobs and bring the food to table in many Misamis Oriental households.
PHIVIDEC under Section 15 of their charter provides reparability clause, to change or pursue other undertakings not contrary to law. Through a progressive legislation by our lawmakers, perhaps PHIVIDEC can host inter active gambling casinos as alternative locators in the near future. The people of Cagayan de Oro and Misamis Oriental should welcome this development.
Should gambling casinos be located instead at the economic zone? It can transform PHIVIDEC to a more vibrant and economically self sufficient zone. Preserving the ways of the city as most Cagayanon’s wanted it to be at the same time avoiding collision with the church and the pulse of the civil society is perhaps a good winning ground and meeting of minds?


Ped T. Quiamjot is one of the brilliant columnists of a local newspaper in Cagayan de Oro City and currently the General Manager of Pryce Plaza Hotel Cagayan de Oro. His column talks on various issues and concerns affecting the business sector and tourism industry.