Okada gets PEZA clearance for $2-B megacasino project

MANILA, Philippines - Universal Entertainment Corp. of Japanese gaming tycoon Kazuo Okada has secured a favorable opinion from the Philippine Economic Zone Authority (PEZA) for its $2-billion integrated casino project in Entertainment City along Manila Bay.

This as local unit Tiger Resorts & Leisure Corp. has obtained a license as a PEZA locator without any irregularities, the gaming firm said.

In a disclosure to Tokyo’s Jasdaq Securities Exchange, Universal said “a document certifying the absence of any bribery or other type of corruption, has reached the local subsidiary that engages in the project.”

The PEZA certification for Tiger Resorts’ unit Eagle 1 Landholding Inc. dispelled allegations of bribery that secured the license for the megacasino project in Parañaque, the company said.

In a letter dated Aug. 23, investment promotion agency PEZA discussed the process that resulted in the declaration of Okada’s casino project as a tourism economic zone (TEZ).

“Eagle 1 complied with all the necessary documents required for the Presidential Proclamation of the Okada Resorts as TEZ and Tiger Resorts as the ecozone tourism locator,” PEZA said.

The license was secured “without any special favors or accommodations extended and (Tiger Resorts) went through the usual process,” PEZA added.

The process included the filing of an anti-graft certificate, a basic requirement applied to all developers and locator enterprises of PEZA’s special ecozones.

Ecozone locators are entitled to perks such as tax-free importation of capital equipment, income tax holiday and faster permitting process.

Last month, Universal said it is beefing up its investigation on an alleged bribery in relation to its megacasino project in Entertainment City.

The newly-created third-party committee aims to investigate the responsibility of those involved in the alleged $40 million payments, clarify whether or not those involved are legally liable and formulate recommendations to prevent such events in the future.

Okada and former business partner Steve Wynn are embroiled in a bitter corporate feud, which started when the Japanese pachinko mogul questioned the $135-million donation pledged by Wynn Macau Ltd., a Macau subsidiary of Wynn Resorts in Macau. Both businessmen continue to trade barbs, accusing the other of questionable payments to public officials in Asia, including the Philippines.

Okada’s Tiger Resorts earlier ended its partnership with Gokongwei-led Robinsons Land Corp. to jointly develop the hotel and casino complex.

Tiger Resorts is one of four groups that were granted a license by the Philippine Amusement & Gaming Corp. to operate a casino in the 100-hectare Entertainment City.