Philippines gaming regulator Pagcor has opted to proceed with the opening of Casino Filipino Manila Bay, claiming it was “advantageous” to the government to do so despite a dispute over the leasing arrangement with Vanderwood Management Corporation.
The decision follows revelations that Pagcor had paid Vanderwood Ph234 million in advance rental fees while the property, located at Rizal Park Hotel, was still being built, with Pagcor insisting it has since claimed the payment back. It added that rental fees at Casino Filipino Manila Bay would save around Ph200 million annually compared with the former site.
In a statement, Pagcor said, “After carefully weighing the odds, the Philippine Amusement and Gaming Corporation proceeded with the opening of Casino Filipino Manila Bay as it was deemed advantageous to the corporation and the government.
“When the present management took office in June 2016, the contract between Pagcor and Vanderwood Management Corporation had been signed and sealed. However, some issues were raised by the Commission on Audit (COA) in its Notice of Disallowance (NOD) as to the payment of advance rental and deposit.
Vanderwood was informed of the COA NOD and Pagcor demanded rectification of the observations, but it sued Pagcor for injunction.
“Since the Trial Court declined to issue a Preliminary Injunction, Pagcor deposited the Ph234 million security check of Vanderwood, thus recovering the Advance Rentals and Deposits previously paid by it to Vanderwood. As a consequence, COA lifted the Notice of Disallowance. In addition, Pagcor demanded penalty of Ph250,000 per day of delay and claim against Vanderwood’s Ph1 billion bond.
“The transfer from its old site to Casino Filipino Manila Bay project provides much advantage for Pagcor and the government. On monthly rental alone, Pagcor would only be paying Ph13 million at Casino Filipino Manila Bay, less than half of what it used to pay for the old site amounting to over Ph28 million. This translates to an annual savings of close to Ph200 million in rental fees.
“At Casino Filipino Manila Bay, the corporation will be provided a minimum of 100 secured parking slots, with 50 free slots exclusively for Pagcor’s use, a clear contrast from the 16 basement parking slots being paid monthly at Ph2,500 each.
“Moreover, Vanderwood will shoulder the maintenance cost of the leased premises every five years by way of repainting, replacement of toilet fixtures, replacement and upgrade of CCTV equipment and adjuncts, and change of theme or motif including the floor carpets.
“Pagcor also considered the newly restored and upgraded facilities of CF Manila Bay, in comparison with the old site that has yet to be renovated. The corporation likewise exercised frugality in its decision to move to Casino Filipino Manila Bay as there was no escalation clause in its contract. Under the contract on its old site, there was a 5% escalation on the third and fourth year of the lease.
“Despite the ongoing legal squabble and protests, Pagcor considers the transfer to its new site as favorable to Pagcor and the government.”
The new Casino Filipino Manila Bay opened for business on Wednesday.
