Subic casino firm warns of closure
By Jenniffer B. Austria
Malaysian casino operator Legends International Resorts Ltd. yesterday warned the closure of its local operations, Legenda Hotel Casino in Subic, by state-run Philippine Amusement and Gaming Corp. will affect future foreign investments in the country.
Legends executive director and chief executive officer Khoo Boo Boon said the government failed to honor business contracts and establish a level playing field.
Pagcor closed down Legenda Hotel in May after Legends failed to remit 15 percent share of its revenues as prescribed under its license to operate. Legends said it had been losing money since 1999 because of the Asian financial crisis.
An Olongapo court has placed Legenda Hotel under rehabilitation based on Legends’ petition in 2004.
In 2000, Pagcor and the Subic Bay Metropolitan Administration threatened to cancel Legends’ license to operate and close down its casino operations if it fails to further amendment its memorandum of agreement with the government.
Pagcor and SBMA allegedly asked Legends to pay a minimum of P5 million a month each as guaranteed payment, regardless of whether the casino was earning from its operations or not.
Khoo said that Legends eventually agreed because of political pressures and fear that the company would lose its $130-million investment in Subic. But after repeated attempts to hammer out an amicable settlement with Pagcor, Legends filed an injunction case against the state gaming firm.
The Olongapo City Regional Trial Court, Branch 72, declared the 2000 amendment null and void and upheld the original terms of the 1993 agreement between Pagcor and Legends mandating the 15 percent share of the casino’s net income.
But despite the court order, Pagcor closed down the Legenda Hotel.
Khoo also accused Pagcor officials of discrimination after it allowed Subic Diamond Casino, which stands right across the Legenda property, to operate despite a provision in its contract that Legends had the exclusive right to operate a casino within SBMA.
Khoo alleged that Subic Diamond Casino was not required to pay a monthly “guaranteed payment” unlike Legenda.
Khoo said the practice of clearly favoring one investor over the other ran counter to the government’s campaign to attract foreign investors to invest their money in the Philippines.
Khoo, however, said Legends was still willing to settle this issue with Pagcor.
Legends, a Pagcor-license casino operator, has been operating in Subic Bay special economic zone since 1990s.
The company suffered financial problem some years back and accumulated debts amounting to P7 billion from various local and foreign financial institutions.
Legends also owed the national government P1 billion, representing government’s share in casino operations. The company was originally incorporated and operated under the name Genting International Casino Hotel and Resort Ltd. The company then changed its name to Subic Bay Resort Hong Kong Ltd. and then renamed it again to Legends. Manila Standard
Malaysian casino operator Legends International Resorts Ltd. yesterday warned the closure of its local operations, Legenda Hotel Casino in Subic, by state-run Philippine Amusement and Gaming Corp. will affect future foreign investments in the country.
Legends executive director and chief executive officer Khoo Boo Boon said the government failed to honor business contracts and establish a level playing field.
Pagcor closed down Legenda Hotel in May after Legends failed to remit 15 percent share of its revenues as prescribed under its license to operate. Legends said it had been losing money since 1999 because of the Asian financial crisis.
An Olongapo court has placed Legenda Hotel under rehabilitation based on Legends’ petition in 2004.
In 2000, Pagcor and the Subic Bay Metropolitan Administration threatened to cancel Legends’ license to operate and close down its casino operations if it fails to further amendment its memorandum of agreement with the government.
Pagcor and SBMA allegedly asked Legends to pay a minimum of P5 million a month each as guaranteed payment, regardless of whether the casino was earning from its operations or not.
Khoo said that Legends eventually agreed because of political pressures and fear that the company would lose its $130-million investment in Subic. But after repeated attempts to hammer out an amicable settlement with Pagcor, Legends filed an injunction case against the state gaming firm.
The Olongapo City Regional Trial Court, Branch 72, declared the 2000 amendment null and void and upheld the original terms of the 1993 agreement between Pagcor and Legends mandating the 15 percent share of the casino’s net income.
But despite the court order, Pagcor closed down the Legenda Hotel.
Khoo also accused Pagcor officials of discrimination after it allowed Subic Diamond Casino, which stands right across the Legenda property, to operate despite a provision in its contract that Legends had the exclusive right to operate a casino within SBMA.
Khoo alleged that Subic Diamond Casino was not required to pay a monthly “guaranteed payment” unlike Legenda.
Khoo said the practice of clearly favoring one investor over the other ran counter to the government’s campaign to attract foreign investors to invest their money in the Philippines.
Khoo, however, said Legends was still willing to settle this issue with Pagcor.
Legends, a Pagcor-license casino operator, has been operating in Subic Bay special economic zone since 1990s.
The company suffered financial problem some years back and accumulated debts amounting to P7 billion from various local and foreign financial institutions.
Legends also owed the national government P1 billion, representing government’s share in casino operations. The company was originally incorporated and operated under the name Genting International Casino Hotel and Resort Ltd. The company then changed its name to Subic Bay Resort Hong Kong Ltd. and then renamed it again to Legends. Manila Standard
posted by OlongapoCity Zambales at
7:45 AM
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