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News » Philippine authorities crack down on illegal BPOs in Mandaue

Philippine authorities crack down on illegal BPOs in Mandaue

illegal-bpos-in-mandaue
Photo from Mandaue City Business Permit and Licensing Office/ Facebook

CEBU, PHILIPPINES — The Business Permit and Licensing Office (BPLO) of Mandaue City, Cebu, has ramped up inspections of over 100 business process outsourcing (BPO) companies to ensure compliance with declared business activities. 

This initiative follows President Ferdinand Marcos Jr.’s Executive Order (EO) 74, issued on November 5, 2024, which bans Philippine Offshore Gaming Operators (POGOs), internet gaming, and other offshore gambling activities nationwide.

BPLO Chief August Lizer Malate highlighted concerns about illegal gaming operations masquerading as legitimate BPOs

“BPOs are often identified as fronts for internet gaming operations. While they may appear to be legitimate call centers, they are, in some cases, involved in illegal gaming activities. This is what the BPLO aims to prevent,” Malate said during a press briefing.

Stricter inspections to protect industry integrity

The BPLO will conduct both scheduled and surprise inspections on BPO establishments. Companies are required to present key documents such as business permits, tax compliance records, mayor’s permits, and employee contracts.

Inspection teams of eight to ten personnel will also examine business premises for inconsistencies in declared activities, missing permits, or suspicious behavior that could indicate illicit operations. 

Malate emphasized that the crackdown aims not only to enforce compliance but also to safeguard the integrity of the BPO industry and address societal concerns tied to illegal offshore gaming.

Nationwide ban on POGOs fuels local action

EO 74 officially bans all POGO-related activities in the Philippines and mandates local governments to monitor businesses potentially linked to illegal gaming. The directive aligns with reports of offshore gaming operators engaging in cybercrimes such as online scams, money laundering, and human trafficking.

In Mandaue City, authorities are particularly vigilant about businesses operating in hard-to-access areas like condominiums and subdivisions. Malate noted that inspections often uncover discrepancies between declared operations and actual activities.

Public cooperation encouraged

The BPLO is urging residents to report suspicious activities in their communities. “Unfortunately, those with malicious intent will always find ways to innovate and exploit opportunities. That’s why we need to remain vigilant,” Malate said.

This crackdown underscores Mandaue City’s commitment to maintaining a compliant business environment while supporting President Marcos’ broader efforts to eliminate illegal offshore gaming operations nationwide.

Read more here.

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