Cagayan Economic Zone Authority can operate jai alai - DOJ

MANILA, Philippines - The Cagayan Economic Zone Authority (CEZA) can operate and issue a license for the operation of jai alai games within its boundary, the Department of Justice (DOJ) said.

In a four-page legal opinion signed by Justice Secretary Raul Gonzalez recently, the DOJ agreed with the Office of the Government Corporate Counsel (OGCC) that CEZA has the authority “to establish, manage and operate” jai alai betting stations inside or outside the Cagayan Special Economic Zone.

The DOJ stressed that although the Cagayan Special Economic Zone Act of 1995 (Republic Act 7922) does not specifically state that CEZA can operate jai alai betting stations, such an authority is implied under Section 6 (f) of its charter.

The provision states that among CEZA’s functions is “to operate on its own, either directly or through subsidiary entity, including games, amusements, recreational and sports facilities such as horse racing, dog racing, gambling casinos, golf course, and others.”

Gonzalez said the word “game” has been held to refer to “any sport” or has been defined in the dictionary as “to play for a stake,” “amusement” or as a “pleasurable diversion.”

The justice chief said CEZA, pursuant to its charter, is therefore authorized to operate its own or issue a license for the operations of jai-alai.

Gonzalez said the CEZA charter is “clear and categorical” that the area shall be developed into and operated as a self-sustaining industrial, commercial, financial, investment, and tourism/recreational center.

“While administrative bodies derive their power from the laws of their recreation and that any power sought to be exercised must be found within the four corners of the statute under which the agency proceeds, it has been held that when authority is given by statute to accomplish a stated governmental purpose, there is also given, by implication, authority to do everything necessary to accomplish the purpose that is not a violation of the law or of public policy,” Gonzalez said.

The word “such as” in Section 6 (f), Gonzalez explained, is merely to provide examples and is not intended to show exclusivity.

The DOJ also affirmed the OGCC position that there is no provision in the CEZA charter or in any other law prohibiting the latter from operating jai alai betting stations.

Secretary Jose Mari Ponce, administrator and acting chairman of the CEZA board, sought the DOJ’s legal opinion.