Describing it as a “very interesting proposal,” President Benigno S. Aquino III on Monday said the privatization of the Philippine Amusement and Gaming Corporation (Pagcor) should be thoroughly studied.

The President was reacting to reports that Ramon Ang, vice chairman of San Miguel Corporation, is interested in buying Pagcor, the government-owned and -controlled corporation which handles gaming pools and casinos, for $10 billion.

Aquino said that the state-run gambling firm must be in good shape before it is privatized so that government would get the optimum price from the sale.

“That matter has to be studied. I think I stated to you before. We have a problem. There are so many allegations with regards to Pagcor. You have to ensure that if we intend to sell something, it is at the best price that we can get. It is a proposal, it is a very interesting proposal,” Aquino said in an interview at the sidelines of the 43rd foundation anniversary of the Association of Southeast Asian Nations (ASEAN) at the Department of Foreign Affairs in Pasay.

“But at the same time we have to study the matter first,” Aquino said.

Earlier, Aquino said he was open to privatizing Pagcor but the government would have to evaluate its records first.

Though it has been a key source of government revenue, Pagcor has been criticized for allegedly being a source of corruption in the past.

Presidential Spokesperson Edwin Lacierda said though the administration appreciates Ang's bullish perspectives on the country's business opportunities under the Aquino presidency, Pagcor Chairman Cristino Naguiat still has to study all the contracts it entered into during the past administration.

Lacierda also pointed out that Ang has yet to make his proposal formal.

“Let me say that the interview with Mr. Ramon Ang has many assumptions that need to be determined or studied. Number one, on the issue of the $10 billion, we are studying (if) that is a fair valuation. Part of the mandate of Chairman Naguiat is to study all the contracts Pagcor entered into. We understand that the government is only getting a quarter of what should it be getting. So that's under study. There is a due diligence going on, first of all, whether the government was disadvantaged with those contracts,” Lacierda said.

He added that a stronger peso as a result of a $10-billion infusion to government from the possible sale of Pagcor, as seen by Ang, also has its downside.

“That has consequences to the export sector and the overseas Filipino workers. So that’s all under study. But let me say that we are thankful to Mr. Ramon Ang about his bullish perspective on the country's business opportunities under the Aquino administration,” Lacierda said.

“These things have to be studied from a macro perspective and from the point of view of the government, we have to look at it from a different perspective other than from a perspective of a businessman,” he said.

Aquino had also batted for the regulation of gaming establishments of Pagcor which he said should only be established in tourist hubs.