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Travel/Hospitality
Hong Kong, Hong Kong
Nationality of Foreign Officials: Philippines
Summary of Allegations:
On 24 November 2016, more than 1,316 Chinese nationals working at Fontana Leisure Parks and Casino in Clark, Pampanga, were arrested and accused of illegally working for online gaming operation run by Jack Lam Yin Lok ("Jack Lam"). Jack Lam is a chairman of Jimei International Entertainment Group ("Jimei") and owner of Fontana Leisure Parks and Casino, a Filipino subsidiary of Jimei.
Following the raid at the casino, Jack Lam allegedly called Wally Sombero, a Philippine police Superintendent, who agreed to set up a meeting between Jack Lam and Vitaliano Aguirre II, the Justice Secretary. Jack Lam allegedly gave Sombero P60 million. Sombero allegedly paid P50 million to Immigration Deputy Commissioners Al Argosino and Mike Robles. The alleged bribe was allegedly in exchange for the release of around 600-1000 Chinese employees illegally working at Fontana Leisure Parks and Casino and to legalize the casino's online operations.
Argosino and Robles claimed that the money was paid by Sombero as bribe payment but taken only as part of an entrapment operation in their corruption investigation. Furthermore, Argosino and Robles claim that P2 million of the P50 million received went to Sombero and P18 million went to Bureau of Immigration intelligence chief Charles Calima.
However, Sombero denies the accusations by Argosino and Robles and alternatively claims that money was extorted from him. According to Sombero, Argosino allegedly demanded P50 million as bail funds for the arrested Chinese workers. Sombero also claims that Aguirre allegedly started demanding money from Sombero, a total of P150 million, following a 25 November 2016 meeting between Justice Secretary Vitaliano Aguirre, Lam, Argosino and Sombero to brief Aguirre on the dynamics and opportunities of online gaming. Following his retirement from the police force, Sombero started the Asian Gaming Service Provider Association. Sombero allegedly reported Argosino's monetary demand to Calima and the individuals planned an entrapment operation against Argosino on 30 November 2016. In regards to the P2 million Argosino and Robles allege that was passed onto Sombero, Sombero claimed that the individuals gave him the money to form a legal team for the documented Chinese nationals.
Andrea Domingo, the current Chairwoman and CEO of the Philippines Amusement and Gaming Corp ("Pagcor") met with Jack Lam three times. While speaking with the Senate Blue Ribbon Committee, Domingo denied being offered a bribe by Jack Lam. The meetings with Jack Lam were to discuss Fontana Leisure Parks and Casino paying the appropriate level of fees to the government, despite the casino being offered special rates.
Approximate Alleged Payments to Foreign Officials: P50 million
Business Advantage Allegedly Obtained: release of Chinese employees illegally working at Fontana Leisure Parks and Casino and to legalize the casino's online operations.
Agencies: Philippines: National Bureau of Investigation
Results:
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:
On 3 December 2016, Filipino President Rodrigo Duterte ordered the arrest of Lam if Lam attempted to enter the Philippines. The presidential order was issued after Lam left the Philippines on 29 November 2016 for an unknown destination.
On 6 December 2016, Jimei released a statement noting recent press articles relating to alleged bribery and economic sabotage by Lam and distancing itself from Lam. The company clarified that the gaming operations referenced in the media reports is Lam's own personal matter and is in no way part of the group's business.
Fontana and another casino of Lam located in Laoag City have been temporarily closed pending the investigation into alleged illegal or unlicensed online gaming operations.
Lam has claimed that the Fontana's online gambling business had obtained a license from the Cagayan Economic Zone Authority (CEZA), but Aguirre said CEZA has not authorized any of its operators to set up office or any of its operations in the Clark Freeport.
On 27 October 2017 the Office of the Ombudsman announced that it had established that Argosino and Robles had received PHP 50 million from Lam in a deal facilitated by Somero, and that therefore Lam was charged with violating Presidential Decree 46 for bribing Philippine Bureau of Immigration officials.
Agencies: Philippines: National Bureau of Investigation
Results: Prosecution of Public Officials
Year Resolved:
Compliance Monitor:
Ongoing: Yes
Details:
Justice Secretary Vitaliano Aguirre II ordered the National Bureau of Investigation ("NBI") to look into the matter instead of the BI.
On 8 December 2016, Wally Sombero voluntarily appeared at an NBI claiming his innocence. Sombero was questioned by the NBI director Dante Gierran. Sombero turned over his P2 million share from the P50-million bribe to the Office of the Ombudsman and filed a extortion and graft complaint against Michael Robles and Al Argosino.
On 12 December 2016, the NBI launched a probe of Robles and Argosino for allegedly receiving bribes from Jack Lam. The Department of Justice announced that the agency had video evidence of Wally Sombero delivering five paper bags, each reportedly containing P10m (USD 201,000) to Robles and Argosino at a restaurant in a casino mall in Parañaque City on 26 November 2016, two days after the Chinese workers’ arrests.
On the same day, 12 December 2016, Robles and Argosino issued a statement that they were taking leave from their positions. The two surrendered P30 million (Dh2,2 million) of the alleged P50 million (Dh3,69 million) bribe they took to Justice Secretary Aguirre.
On 14 December 2016, Justice Secretary Aguirre has recommended the dismissal of Robles and Al Argosino.
On 13 December 2016, Charles Calima was dismissed from his position as BI chief for his alleged role in the extortion scandal. On 22 December 2016, Calima filed a complaint with the Criminal Investigation and Detection Group ("CIDG"), Philippine National Police, for plunder against Robles and Argosino. Calima also turned over two paper bags with P18,000,000. Justice Secretary Aguirre asked the CIDG to turn over the money/evidence to the NBI.
On 27 October 2017 the Office of the Ombudsman announced that “Ombudsman Conchita Carpio Morales has ordered the filing of charges for plunder under Republic Act No. 7080 against [former] Bureau of Immigration (BI) [deputy] commissioners Al Argosino and Michael Robles, together with Wenceslao Sombero, Jr, president of the Asian Gaming Service Providers Association, Inc (AGSPA), after they were found to have extorted PHP50 million in exchange for the release of 1,316 arrested Chinese nationals who were violating Philippine immigration laws.”
Agencies: Philippines: Senate
Results:
Year Resolved: 2017
Compliance Monitor:
Ongoing: No
Details:
A Blue Ribbon Committee of the Senate is investigating the alleged bribery of the National Bureau of Immigration involving Jack Lam. The committee will recommend that graft charges be filed against Immigration Commissioner Jaime H. Morente, former Immigration Associate Commissioners Michael Robles and Al Argosino, and retired Police Director Charles Calima.
According to Senator Richard J. Gordon, Jack Lam is "off the hook" because no bribery was proven.