Manila: The presidential palace said it will not compel the chair of the government gaming firm to quit his post amid allegations he received perks from a Japanese businessman.

Cristino Naguiat Jr, chair of the state gambling concern, the Philippine Gaming Corporation, was accused to have received perks to seal lucrative gaming contracts with Kazuo Okada, erstwhile vice chairman of Las Vegas-based Wynn Resorts Ltd.

Deputy presidential spokesperson Abigail Valte said the palace is taking the middle ground in the controversy. Reports said Naguiat has close ties President Benigno Aquino III being former school buddies.

"Any call for resignation or for any official to take a leave, we leave it to the discretion of that official on how to take the call for resignation or for a voluntary leave," she said in an interview over state-run dzRB radio station.

"So it's up to chairman Naguiat on what will be his response on that call," she added.

Earlier, retired Archbishop Oscar Cruz, a known anti-gambling advocate, had earlier accused the Aquino administration of being lenient to some of his "friends" in the government service including Naguiat.

"It's readily expected," said Cruz, a former president of the influatial Catholic Bishops' Conference of the Philippines (CBCP).

The prelate also expressed doubts in the government's anti-corruption campaign, saying that it is only intended for Aquino's political rivals.

"So it's business as usual (for Aquino's allies)," Cruz said.

Aquino had said that Naguiat should be presumed innocent until proven guilty that the latter committed mistakes in his dealings with the Japanese casino operator to ensure that a new Manila casino is built.

But the president said Naguiat would be sanctioned if the government finds him at fault with respect to the allegations.

Presidential spokesperson Edwin Lacierda had earlier said the Pagcor chief did not commit any ethical violations on receiving favours and perks from Okada. He said such was a common practice in the gaming industry.

Naguiat allegedly took gifts and freebies from the Japanese casino tycoon, whose company signed a license to operate in the country.

According to reports, among the perks he got from Okada include the free hotel accommodation in Macau, $20,000 shopping money, and a gift for his wife.