On September 2, the Mayor of Lapulapu City, Cebu, Junard “Ahong” Chan, ordered the closure of the Tourist Garden Hotel and its five associated businesses suspected of illegal online gambling operations, following a raid by the Presidential Anti-Organized Crime Commission and other agencies two days earlier, which found 162 foreigners massively involved in online fraud and illegal online gambling.
Related news:Raid on Cebu's Royal Tourist Garden Hotel, 83 Chinese involved in online gambling and fraud arrested
Mayor Junard “Ahong” Chan, along with officials from the City Legal Office and Treasurer’s Office, issued a cease and desist order to the Royal Tourist Garden Hotel. Reports indicate that the resort has been operating without a valid work permit since 2019 and is involved in "online fraud" and illegal online gambling operations.
Three days ago, the resort was raided, and 169 foreigners were arrested.
The front page of Cebu Free People's Report on September 2
The mayor told reporters at a press conference: "Because they are using their premises and some permits issued by the city hall for illegal activities, we issued a cease and desist order. The resort management must be held accountable for allowing these illegal activities."
"Because you just use the permit as a shield, you use it as a front, you misuse it, and now because this resort has been applied to illegal online gambling and online fraud, we need to close the above institutions," the mayor added.
Also issued a "stop business operation" order were CyberInternet House Corporation, Nanyang Zhongjing Tobacco Corporation, Hwa Yan Realties Incorporated, Royal 1 Suwu KTV, Corp., and ASEAN Gufeng International Trade Corp. All these businesses located within the Royal Tourist Garden Hotel have different owners and have signed leases with the resort.
Furthermore, the mayor emphasized that all other permits related to the business operations of all six companies have also been suspended.
The front page of Cebu Free People's Report on September 3
Mayor Junard “Ahong” Chan said, after the online gambling parks in Bamban, Tarlac, and Porac, Pampanga were attacked, he was sure that Lapulapu City had online gambling operations. "I am certain because Lapulapu is the gateway to Cebu. There is an airport here, transportation is too convenient, and all kinds of people can easily come," he said. He also revealed that the Lapu-Lapu City’s Business Inspection Board and the city police department had identified areas and institutions in the city that could operate as online gambling parks.
"All this is spreading in our city, we suspect the suspects are there," the mayor said. In the 30 communities of Lapulapu City, they have identified suspicious areas, but have not yet verified the specific situations. "These are the issues we really need to verify and address. I can't say because maybe they want to stay alert so we can get ahead of them in these communities," he also said, promising to verify the operation of online gambling in the city within a month, "I assure you, within this month, we will catch these suspects by patrolling with our inspection team. In addition, the city's Business Inspection Board will also conduct random checks on businesses and premises."
The Mayor of Lapulapu City (first from the left) leading the seal of the Royal Tourist Garden Hotel
Before the discovery of the online gambling park in the city, the mayor had already ordered the Lapulapu City Police Department to investigate foreigners living within the city's jurisdiction. The mayor, who also serves as the chairman of the Regional Peace and Order Council, also stated that they need enough equipment to detect illegal activities in the city, such as online gambling operations.
"We need to be able to closely monitor our jurisdiction to discover the small gangs involved in illegal activities there, we do not have the relevant network monitoring equipment, only the Presidential Anti-Organized Crime Commission has such equipment, as mayor, I strongly recommend purchasing that kind of equipment. The Regional Peace and Order Council will propose a budget for the relevant detection equipment," the mayor explained.
Furthermore, the mayor also stated that after noticing a delay in issuing the search warrant for the computers and other online fraud tools found in the raid on Royal Tourist Garden Hotel, the city needs a "joint team" to carry out operations.
Junard “Ahong” Chan showing the cease and desist order to the media
This "joint team" should be composed of local government departments, the Presidential Anti-Organized Crime Commission, the Bureau of Immigration, the National Bureau of Investigation, the police, and the City Social and Welfare and Development Office.
"I have already requested the Ministry of Justice to set up a joint investigation team in the city, because the online gambling gang has come here from Bambanga and Tarlac," the mayor said.
The Philippine Bureau of Immigration stated yesterday (September 1) that the 169 foreigners suspected of engaging in illegal online gambling business in Lapulapu City will undergo investigation procedures and will be temporarily detained before being deported.
The Director of the Bureau of Immigration, Norman Tansingco, also stated that the owners of the resorts where online gambling operations were discovered should also face charges of harboring illegal foreigners in the region.
In a statement, he said: "We will recommend that the authorities prosecute the resort owners to find out why they allowed foreigners to secretly use their property for secret activities. This will send a warning to those who may try to engage in illegal online gambling business, which has been banned by President Marcos Jr."
The cease and desist order signed by Junard “Ahong” Chan
On July 22, after President Marcos Jr. ordered a complete ban on online gambling business in his third State of the Nation Address, the police were authorized to use their "visitation powers" to inspect buildings and places suspected of illegal activities, to cope with the difficulty of monitoring online gambling activities.
Mayor Junard “Ahong” Chan of Lapulapu City is still waiting for the results of the investigation conducted by the Presidential Anti-Organized Crime Commission, and once it is confirmed that there is indeed online gambling operation, Lapulapu City will revoke all permits of Royal Tourist Garden Hotel.
He said: "Let's wait and see what their results are, if this is some investigation results, then it is the right time for the city to take action. This is especially true in the capital or other places where various crimes originate. After President Marcos Jr. announced the ban on illegal online gambling operations, we immediately ordered the police to monitor and guard against those involved, no matter what they hide, they will still be caught."
The arrested personnel of Royal Tourist Garden Hotel
"After tracking, we found that this group of people came from Bambanga Province. They escaped from a local raid and secretly moved to our city to continue the same illegal business. However, this is a good thing, even if you are still here, illegal acts are still caught, so it will not cause any crime."
He also urged local residents to remain vigilant, and if they find any signs of online gambling operations in their areas, to immediately report to the nearest police station, or send him a message on his Facebook account.
The head of the Immigration Bureau's Intelligence Division, Fortunato Manahan, Jr., revealed that the reason for the raid on Royal Tourist Garden Hotel was a mission order issued by Chen Xingge to 13 illegal foreigners in the Agus community of Lapulapu City, who were monitored for overstaying and illegal work at the aforementioned location.
The Department of Social Welfare and Development's office in Central Visayas stated that the operation at the resort also rescued 10 Filipino women and one minor, who were handed over to the office for further processing.
The agency said that the Department of Social Welfare and Development will provide temporary housing, social psychological support and counseling, medical and other services for the rescued Filipino citizens, and the Immigration Bureau will provide the necessary services for the rescued foreigners.
According to the National Bureau of Investigation of Central Visayas, these foreigners include 93 Chinese, 69 Indonesians, 1 Malaysian, and 6 Burmese.
The head of the agency, Renan Augustus Oliva, said in a phone interview that the seven identified as administrators or owners of online gambling companies will face legal proceedings today for violating the Anti-Trafficking in Persons Act of 2003.
During the previous raid, computers, mobile phones, and other electronic devices used for "pig-butchering" love scams and cryptocurrency fraud were confiscated.
The Presidential Anti-Organized Crime Commission earlier revealed that most of the foreigners and their bosses and managers came from the previously raided online gambling park in Porac, Pampanga.
The spokesperson for Central Visayas, Gerard Ace Pelare, assured that the continued monitoring of illegal online gambling companies remains their top priority, and it is currently difficult to definitively confirm the absence of online gambling business in the Central Visayas islands, especially in secluded or private institutions.
"Just like this one (in Lapulapu City), it does exist in a secluded area. So no one can be sure that there is no online gambling in a certain area. The proof from the local police only indicates that no signs have been found up to that period," Pelare said.
He also expressed gratitude for the information provided by the Indonesian victims, which facilitated the recent successful operation.
The spokesperson for the Lapulapu City Police Department, Christian Torres, also stated that it is difficult to monitor the operation of online gambling companies, especially in private institutions that use legitimate businesses as a front. "If we have no evidence that these areas have been used as online gambling centers, then applying for a search warrant is really difficult. This, and without our Indonesian people's report, no one would know it was there," he said.
In July 2023, Junard “Ahong” Chan stated that there was no online gambling business in Lapulapu City.
Yesterday, he clarified that he was referring to the legal online gambling company located in Barangay Basak's City Times Square Mactan; however, the company no longer operates after President Marcos Jr. ordered a ban on online gambling business.
"There is an area in City Times Square Mactan in Barangay Basak, Lapulapu City that was rented by an online gambling company for online gambling business. They obtained an online gambling license issued by the Philippine Amusement and Gaming Corp., and were allowed to operate legally. In Lapulapu City, all businesses are welcome as long as they are legal," he finally said.
