Last week, Philippine authorities arrested a “big fish” in the now-defunct offshore gaming industry. Investigators hope Lyu Dong will lead them to other key figures, possibly government officials.
On 10 October, Philippines armed forces and immigration officials arrested Dong, also known as Lin Xunhan, near Metro Manila. The Chinese national has been described as a “kingpin” of the crime-infested offshore gaming industry.
Posing as legitimate licensees, some Philippine Offshore Gaming Operations (POGOs) actually were fronts for online scams. Raids of POGOs in Rizal, Angeles City, Bamban, Porac and elsewhere uncovered evidence of money laundering, kidnapping, forced labour, torture and even murder.
On 22 July, President Ferdinand Marcos Jr banned the industry, effective immediately. He also ordered the deportation of tens of thousands of foreign workers.
Dong reportedly built “network of scam farms”
Authorities call Dong a longtime POGO boss who “systematically built a network of scam farms” posing as legal businesses. Winston Casio, of the Presidential Anti-Organized Crime Commission (PAOCC), called him one of the industry’s “major financiers and pioneers”. He added that Dong’s arrest could help bring others to justice.
“He would likely be able to point to some individuals, private individuals or even former or current government officials who may have aided him,” Casio said. “This guy is a big fish.”
Dong has been linked to the POGO supposedly run by former Bamban mayor Alice Guo. In 2022, the Chinese-born Guo apparently masqueraded as a native-born Filipina to run for office. Meanwhile, she was allegedly financing the local POGO with funds from China.
Following a raid of the POGO and her suspension as mayor, Guo fled the country. She was apprehended a month later in Indonesia. Now back in the Philippines, she faces a raft of charges including misrepresentation, money laundering and human trafficking.
Friends in high places
Commentators say Guo’s connection to Dong suggests a wide-ranging network of conspirators. It could even mean an attempt by Beijing to infiltrate Philippine enterprise and government. Senator Risa Hontiveros, head of the POGO investigation committee, believes Dong had “someone from the government protecting him”.
Likewise, when Guo escaped, Senator Sherwin Gatchalian suggested she must have had help from influential friends.
Others in or near government also may have ties to criminal POGOs. Attorney Harry Roque, once the spokesman for former president Rodrigo Duterte, reportedly served as lawyer for the Porac POGO. And Tony Yang, brother of Duterte’s economic advisor Michael Yang, has been linked to the Bamban operation.
For Philippines, national security remains a concern
Senator JV Ejercito also warns of the possibility that China would try to penetrate Philippine halls of power. The POGO drama is playing out amid tensions over territorial rights in the South China Sea.
“If we are in a normal situation, we can take it easy,” Ejercito remarked. “But we are in conflict with China. We don’t want them to intrude on our government system. They might be planting their agents who would run as elective officials.”
Gary Ador Dionisio, dean of the Benilde School of Diplomacy and Governance, said Alice Guo “is the tip of the iceberg on how these POGOs weaken our security infrastructure.”
