The Market Monitor Minding the Nation's Business
The Philippine Drug Enforcement Agency (PDEA) unveiled last week a matrix that allegedly exposes a complex network connecting Philippine Offshore Gaming Operators (POGOs) to drug syndicates and corporate fraud.
During a public hearing by the House of Representatives quad committee, PDEA Deputy Director General Renato Gumban detailed how transnational criminal organizations exploit legal gaps and corporate frameworks to facilitate illegal activities like drug trafficking, money laundering, and suspicious land dealings involving foreign nationals.
Gumban traced the investigation to a joint operation on September 24, 2023, which led to the seizure of 560 kilograms of shabu valued at P3.6 billion in Mexico, Pampanga.
The operation, involving PDEA, the National Bureau of Investigation (NBI), the Bureau of Customs (BOC), and the National Intelligence Coordinating Agency (NICA), uncovered the drugs in a warehouse owned by Willie Ong, also known as Cai Qimeng.
Ong, an incorporator of Empire 999 Realty, Inc., had allegedly received assistance
from former Mexico Mayor Teddy Tumang in acquiring land for the warehouse. Further investigation revealed that Ong and Empire 999 Realty were part of a broader network of companies involved in illicit operations.
Among these companies were Golden Sun 999 Realty and Development Corp. and Yatai Industrial Park, Inc., both linked to Ong and Aedy Yang, another incorporator. Golden Sun 999 was also connected to Rose Nono Lin, a businesswoman with ties to the controversial Pharmally Pharmaceutical Corp. Lin’s firm secured P11 billion in government contracts during the Covid-19 pandemic, despite its small declared capital.
Lin’s business connections extended to Michael Yang, a former adviser to ex-President Duterte, and her husband, Allan Lim (aka Lin Weixiong). Lim, known for using multiple aliases and passports, was implicated in drug operations and casino junket schemes.
He was named in a 2017 drug matrix by former police Col. Eduardo Acierto, which linked him to secret drug labs in Luzon and Mindanao. Michael Yang was also alleged to have handled logistics and finances for drug syndicates.
The PDEA’s presentation further established a direct link between POGOs and organized crime. Hongsheng Gaming Technology, Inc., a POGO operator in Bamban, Tarlac, was identified as a key player. Funded by billions from suspicious sources, including Hong Jiang Yang, a sibling of Michael Yang, the company’s compound was raided in March 2024, leading to additional financial investigations.
Hongsheng Gaming leased its facilities from Baufu Land Development, Inc., owned by former Bamban Mayor Alice Guo. Investigations by the Anti-Money Laundering Council (AMLC) revealed that Guo had funneled illicit funds through entities like QJJ Farm and RMCE Metal Products Trading Co., both previously linked to money laundering activities involving convicted Chinese drug lord Peter Co (aka Wu Tuan Yuan).
Despite being incarcerated, Co’s accounts were found to still be used for laundering operations involving individuals connected to POGOs.
Batangas 2nd District Rep. Gerville Luistro described the findings as both eye-opening and alarming. “The volume of corporate layering along with the corporate personalities are truly overwhelming, Mr. Chair,” Luistro said, stressing the intricate schemes connecting POGOs, drug syndicates, and dubious land acquisitions.