Pagcor chief urges Okada to resolve cases before casino opens

MANILA, Philippines - The construction of Japanese billionaire Kazuo Okada’s planned $2-billion entertainment and gaming complex Manila Bay Resorts remains on schedule but whether it can meet its commitment to open by 2015 is another thing given the complexity of issues he is facing, the head of the Philippine Amusement and Gaming Corp. (Pagcor) said.

In an interview, Pagcor chairman and CEO Cristino Naguiat Jr. said Manila Bay Resorts would not be allowed to start its casino operation until all pending cases involving its owner are resolved.

“They need to open by 2015.  That’s what they committed to us. But let me emphasize that they cannot open the casino unless they have addressed all issues such as the allegations of bribery and the land ownership requirement,” he said.

 â€œAnd if they don’t meet their commitment do we cancel it? And if they request for extension, do we approve it? These are some of the things  we need to discuss with our lawyers,” Naguiat said.

Naguiat noted that construction activity at Manila Bay Resorts remains brisk despite Okada’s failure to find a local partner for the project.

Japan’s Universal Entertainment Corp., a company controlled by Okada, terminated its agreement with Century Properties Group under which the latter was supposed to develop a portion of the $2 billion project.

Century Properties officials said the company would contest the notice of termination and review its “legal options to preserve its rights.”

Under the investment agreement signed in October, Century Properties was supposed to acquire a 36 percent stake in Eagle I Landholdings Inc., the holding company that owns the 44-hectare estate within the Pagcor Entertainment City.

Okada has long been looking for a local Filipino partner to comply with a law restricting foreign ownership of land to 40 percent.  It held exploratory talks with Empire East Land Holdings Inc. and Robinsons Land but failed to reach a final agreement with them.

Naguiat believes Okada’s group remains firm on its commitment to finish construction on schedule and address all allegations hurled against it.

“Construction remains ongoing so we won’t write them any letter yet but once they stop construction, we will step in and ask them to explain,” Naguiat said.

 â€œI believe they’re still serious in doing business here. They’ve already spent more than $200 to $300 million already for the project.  I think they will do everything they can to resolve all pending issues.  From what I heard, they already have about 4,000 workers,” he added.

The Department of Justice and National Bureau of Investigation are conducting separate probes of Okada and his companies on suspicion that bribes were paid to advance Okada group’s casino project.

Universal Entertainment  maintained it conducted its business in the Philippines lawfully and pointed out that it has been supportive of the Philippine government and the latter’s  investigation.

The casino project, targeted for completion in the first quarter of 2015, will feature 2,000 rooms, state-of-the-art gaming facilities, and an indoor man-made beach club covered by a huge glass dome.

It will also  feature a Las Vegas-style water fountain, high-end and casual dining  restaurants, upscale retail shops,  trade halls, cinemas and ample parking lots.