PORAC, Pampanga — Police inspectors discovered an underground tunnel and an indoor firing range during an inspection of a posh leisure resort owned by a Philippine offshore gaming operator (POGO) in Barangay Señora on Saturday.

Armed with a search warrant, a joint police inspection team swooped down on the resort said to be owned by Lucky South 99.

Mayor Jaime Capil had directed the authorities to conduct an onsite inspection with Gov. Dennis Pineda, who joined the search operation.

The joint inspection team visited the premises in Barangay Señora on June 20, upon the instructions of Pineda, who urged all "city and municipal mayors to conduct measures against illegal Philippine Offshore Gaming Operators and similar establishments within the local government unit."

They had tried to conduct the inspection within the premises of a residence along Daisy Street, Purok 6, Barangay Señora, with barangay officials, but they were denied entry in the absence of a search warrant.

Capil coordinated with Porac PNP Officer in Charge Cpt. John Paul Zapanta to verify the existence of POGO activities within Barangay Señora.

On Saturday, July 6, the team headed by Pineda along with the PNP, armed with a search warrant, was able to enter the premises and discovered the underground tunnel and a clandestine firing range.

Capil said the residence in Barangay Señora was first owned by an American national who sold it to the RMM Corp., which eventually sold it to Chinese nationals.

Pineda said on his Facebook page that the leisure resort did not have a building permit from the mayor or clearance from the barangay, yet construction continued.

Two people believed to be incorporators of Lucky South 99, identified as Daniel Salcedo Jr. and Chona Alejandr, both Filipino, were arrested inside the premises.

Capil thanked Pineda for his support after the successful raid.

The Presidential Anti-Organized Crime Commission (PAOCC) said it was recommending the gradual phaseout of POGOs.

PAOCC spokesman Winston Casio said the government should first try phasing out POGOs in a gradual fashion before going for a total ban.

"Before we direct ourselves to a discussion of a total ban, we could probably revisit discussions of a phaseout," Casio said in a news forum over the weekend.

"A gradual phasing out, maybe, a transitional mechanism that would lead to the total eradication of these scam farms," he added.

Casio said the decision on POGOs is a policy issue and would stem from whatever recommendation is made by Executive Secretary Lucas Bersamin, concurrent PAOCC chairman, to President Ferdinand Marcos Jr.

Slowly easing out POGOs from the country would also greatly slash gambling-related crimes, the official noted.

To date, only 42 POGOs are legally operating in the Philippines — 41 in Metro Manila while the other one is in Kawit, Cavite.

On the other hand, 298 POGO licenses were canceled by the government, many of which were illegally operating in different parts of the country.

"So, if there are those operating in Northern Luzon, Calabarzon, Bicol, and all the way to Mindanao and Central Visayas, that means all of them are illegal," Casio said.

"Out of the 298 [POGOs] that were canceled, there are 42 legally operating. A good number of those 298 are still operating. What does that mean? That even if you totally banned them, you don't necessarily take them out of the picture. A good number of them have gone underground," he added.

Calls for the government to ban POGOs intensified due to illegal activities linked to the industry, such as money laundering and human trafficking.

On July 1, the PAOCC, led by Bersamin, had a high-level meeting with officials from the Chinese Embassy in Manila to ramp up collaboration in apprehending people and groups involved in POGO-related crimes.

"The strengthened cooperation between China and the Philippines sends a clear message to criminal syndicates operating across borders that their malicious activities will not be tolerated nor allowed to undermine the security and stability of these nations," the PAOCC said in a separate statement.