Philippines gaming regulator PAGCOR has received authorization from the Governance Commission for Government-Owned and Controlled Corporations (GCG) to abolish 929 permanent positions at its Casino Filipino New Coast branch in Manila as it prepares to hand casino controls to the hotel’s owner, Marina Square Properties, Inc (MSPI).
IAG understands the handover to MSPI, a subsidiary of Hong Kong-listed International Entertainment Corp (IEC), is imminent.
Details of the GCG authorization were contained in a memorandum dated 7 May and seen by IAG in which PAGCOR said it would place all affected employees that opt to remain with PAGCOR to “the same or comparable positions” available within the agency as long as they are qualified.
After a placement committee is created, a phased abolition of positions will take place with employees categorized as follows: unfilled positions; those who would retire; those who would be hired by MSPI; and those who would qualify for transfer to other vacant positions at PAGCOR.
It added that any affected employees who are not placed and are separated from service will be entitled to a Separation Incentive Pay as provided under Executive Order 150.
“The process is intended to ensure not only compliance but also transparency,” PAGCOR said.
As previously reported by IAG, MSPI was issued a provisional casino license in 2020 but has continued to operate the casino at New Coast as a 40-60 joint-venture partnership with PAGCOR in order to gain experience. The company last year signed a new Provisional License agreement with PAGCOR in relation to New Coast, revealing it would invest up to US$1.2 billion to redevelop the property.
PAGCOR, meanwhile, has made no secret of its plans to privatize its self-operated casinos in order to become a pure regulator, with the privatization process hoped to be complete by 2028.
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