August 29, 2024 | 12:00am
MANILA, Philippines — The Securities and Exchange Commission (SEC) has revoked the corporate registration of Lucky South 99 Corp. for its unauthorized involvement in Philippine offshore gaming operator (POGO) activities.
The SEC Enforcement and Investor Protection Department (EIPD) ordered the revocation of Lucky South 99’s certification of incorporation and registration for violations of the Revised Corporation Code of the Philippines.
Under the order, the EIPD found Lucky South 99, formerly Lucky South 99 Outsourcing Inc., engaging in activities other than that of a business processing office as stated in its primary purpose.
“Considering that nowhere is it stated in its primary purpose that Lucky South 99 Corp. is authorized to engage and/or act as a Philippine offshore gaming operator in the Philippines, the activity of Lucky South 99 Corp. that intends to mislead or deceive the public into believing that it was authorized to conduct the aforesaid activities is considered an ultra vires act and therefore constitute serious misrepresentation,” the EIPD order said.
Lucky South 99 was granted its certificate of registration by the SEC in October 2019.
Under its articles of incorporation, its primary purpose is to engage in the export of services by the way of business process outsourcing, serving as an independent contractor performing and offering front and back office services.
Its secondary purpose, meanwhile, includes owning, developing and holding for investment or otherwise real estate of all kinds, except property management of a real estate investment trust.
Last February, the SEC said Lucky South 99 amended its articles of incorporation, particularly its corporate name and business purpose with increase of capital stock.
Its amended primary purpose is “to engage in the business of gaming, entertainment and content streaming of live gaming action in conjunction with the operation of electronic games at gaming sites, except online sabong, catering to the local, regional and global market; and in relation thereto, establish thru joint ventures.”
Also added in its secondary purpose is “to develop a hotel with internet shops and gaming facilities.”
The EIPD said its online investigation showed that Lucky South 99 was not included in the list of offshore gaming licensees, based on a document from the Philippine Amusement and Gaming Corp. dated Aug. 8, 2023.
Further, the EIPD said the Department of the Interior and Local Government posted an advisory dated Sept. 19, 2022 informing the public of its operation, which led to the closure of an illegal POGO facility in Pampanga named Lucky South 99 Outsourcing Inc. for operating without a government license.
Visa downgrade for POGO workers
More than 100,000 workers of legal POGOs were given until Oct. 15 to voluntarily “downgrade” from employment to tourist visas to avoid deportation, the Bureau of Immigration (BI) said yesterday.
During yesterday’s public hearing of the Senate committee on finance chaired by Sen. Grace Poe, Immigration Commissioner Norman Tansingco said the BI has already converted the employment visas, known as 9G visas, of around 2,000 foreign workers to tourist visas, following President Marcos’ directive to phase out POGOs by yearend.
“We already started the ‘downgrading’ (of their) work visas to tourist visas. That will allow them to settle all their accountabilities, secure clearances and leave the country within 59 days,” Tansingco said.
“By Oct. 16, we will start the cancellation of 9G visas, leading to the termination of all (POGO) operations by Dec. 31, 2024.”
During his State of the Nation Address on July 22, President Marcos ordered the total ban of POGOs, to stop crimes related to its operation. – Cecille Suerte Felipe
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