PDEA Exposes Significant Ties Between POGOs and Drug Syndicates During House Investigation

The Philippine Drug Enforcement Agency (PDEA) has unveiled a complex web of criminal operations allegedly linking Philippine Offshore Gaming Operators (POGOs) to drug syndicates, money laundering networks, and fraudulent corporate practices. During a House of Representatives quad committee hearing, PDEA Deputy Director General Renato Gumban presented a detailed matrix exposing how transnational criminal groups exploit legal gaps and corporate structures to facilitate illicit activities such as drug trafficking and questionable land acquisitions involving foreign nationals.

The investigation stems from a joint operation on September 24, 2023, which led to the seizure of 560 kilograms of shabu, valued at PHP3.6 billion ($64.8 million), in a warehouse in Mexico, Pampanga. The operation, conducted by PDEA alongside the National Bureau of Investigation (NBI), Bureau of Customs (BOC), and National Intelligence Coordinating Agency (NICA), implicated Willie Ong, also known as Cai Qimeng, an incorporator of Empire 999 Realty, Inc., who acquired the property with help from former Mexico Mayor Teddy Tumang. Further inquiries revealed that Ong and Empire 999 Realty were part of a broader criminal network involving interconnected companies such as Golden Sun 999 Realty and Development Corp. and Yatai Industrial Park, Inc., both tied to Ong and incorporator Aedy Yang.

Golden Sun 999 was also linked to businesswoman Rose Nono Lin, notorious for her role in Pharmally Pharmaceutical Corp., which controversially secured PHP11 billion in government contracts during the pandemic despite a declared capital of only PHP625,000 ($11,250). Lin’s connections extended to Michael Yang, former adviser to ex-President Rodrigo Duterte, and her husband, Allan Lim (Lin Weixiong), who has been implicated in drug operations and casino junket schemes. Lim, identified in a 2017 drug matrix for his ties to drug labs in Luzon and Mindanao, reportedly used multiple aliases and passports, while Yang has been accused of managing logistics and finances for drug syndicates.

The PDEA also highlighted direct ties between POGOs and organized crime, citing Hongsheng Gaming Technology Inc. as a key example. Based in Bamban, Tarlac, the company was identified as a major player with funding from suspicious sources, including Hong Jiang Yang, Michael Yang’s sibling. In March 2024, a raid on Hongsheng Gaming’s compound further exposed financial irregularities. The company’s facilities were leased from Baufu Land Development, Inc., owned by former Bamban Mayor Alice Guo, who was implicated by the Anti-Money Laundering Council (AMLC) for channeling illicit funds through entities like QJJ Farm and RMCE Metal Products Trading Co. These companies were previously linked to money laundering involving convicted Chinese drug lord Peter Co, whose accounts were found active despite his incarceration.

The PDEA’s investigation revealed a vast network of corporate layering used to mask activities ranging from drug trafficking to financial fraud. Batangas 2nd District Representative Gerville Luistro described the findings as “enlightening and deeply troubling,” emphasizing the overwhelming scale of intertwined corporate and criminal schemes. The revelations underscore the urgent need for tighter regulation of POGOs and stricter oversight of financial and corporate activities to address these pervasive criminal networks.

With POGOs already under scrutiny for alleged involvement in human trafficking, labor exploitation, and tax evasion, the latest findings add weight to calls for comprehensive reforms or a potential ban. The House quad committee is set to continue its probe, with lawmakers and enforcement agencies urged to collaborate on dismantling the systems that enable these operations, marking a critical step in safeguarding national security and economic stability.

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