Finance Secretary Benjamin Diokno called for PAGCOR’s spinoff of its operator role so as to contribute to the Maharlika Wealth Fund.

Benjamin E. Diokno identified PAGCOR as the alternative source of financing for his Maharlika Wealth Fund, to take up the slack following the exit of the Government Service Insurance System (GSIS) and Social Security System (SSS) as original funders.

Based on Diokno’s proposal, PAGCOR will infuse 10 percent of its gross gaming revenue into the Maharlika Wealth Fund, alongside investments from government financial institutions, the central bank, and from royalties, among others, local media reported.

“Pagcor will also have a contribution at least 10 percent of gross gaming revenue streams created. The national government may also contribute and that will be authorized in the general Appropriations Act or any supplemental appropriations,” Diokno was quoted by the local media.

Other sources include royalties on natural resources, such as mining, as well as proceeds from the privatization of state assets and public borrowings, the DOF chief said.

“That’s basically the sources of funding of the Fund, excluding now the social security contributions and GSIS,” Diokno noted.

Under the proposal, the secretary argued that PAGCOR should differentiate its operator and regulator roles.

The Governance Commission for GOCCs (GCG) is in the process of evaluating the decoupling of the functions of PAGCOR following previous Administrations’ plans for potential privatization.

The discussion of PAGCOR spans various Administrations, which invariably drop the initiative given the massive loss of revenue.