MANILA, Philippines - A representative of billionaire casino investor Kazuo Okada in Manila confirmed yesterday that companies owned by his principal have made a total of $15 million in payment to a former Philippine Amusement and Gaming Corp. (Pagcor) consultant.
However, Okada and the top management of his companies did not authorize such transfers, Masahiro Terada told the House committee on games and amusement chaired by Manila Rep. Amado Bagatsing.
Okada is building a $2-billion hotel-casino complex at Pagcor’s Entertainment City at the reclaimed area in Pasay City and Parañaque City.
The $15 million is part of a total of $40 million in transfers to Rodolfo Soriano and his companies that have been reportedly uncovered by investigators in the United States who are looking into possible violations of the US Foreign Corrupt Practices Act by Okada’s firms.
Of the $15 million, Terada said one payment was for $5 million and the other was for $10 million.
He said the transfers were made in May 2010 and were not connected with Okada’s gaming license, which Pagcor granted in August 2008.
He said the $5 million was a “guarantee fee” paid to Soriano in connection with an “agreement,” which he could not sufficiently explain.
“As for the $10 million, it was returned to our account in Hong Kong on the same day the check was released to Subic Leisure and Entertainment. We were surprised why it was returned,” he added.
He told the committee that Soriano made several business proposals to Okada’s companies but that none of these pushed through.
Terada also said that his principal’s firms in Japan have filed cases against three of their employees for the “unauthorized” fund transfers to Soriano.
He identified one of them as Mitsuo Hida.
According to Bayan Muna Rep. Teddy Casiño, who proposed the inquiry, Soriano owns Subic Leisure.
He said Hida and his two co-accused employees have told Japanese authorities that they made the fund transfers upon instructions from Okada.
Terada was not asked about the rest of the $40-million payments to Soriano uncovered by US investigators.
Eastern Samar Rep. Ben Evardone said there’s more than meets the eye in the fund transfers.
“What are these really for? Soriano has a lot of explaining to do,” he said.
Bagatsing promised to invite Soriano and former Pagcor chairman Efraim Genuino to the next hearing.
Pagcor officials informed the committee that Soriano served as consultant with a monthly fee of P1 for three months in 2006.
Bagatsing said the fund transfers could not have been “payoffs” given in connection with Okada’s gaming license, which was granted nearly two years before the questionable payments were made.