Osaka’s audit committee has refuted a claim by a citizen’s group that development of an integrated resort on Yumeshima Island should be halted because operator MGM Resorts was not currently paying rent.
However, the committee noted that care must be taken during construction to allay resident concerns after committee members were split on whether the construction company carrying out liquefaction measures on the site was legally selected.
According to a report by the Japan Broadcasting Corporation (NHK), Osaka City Audit Committee announced the results of an audit into the IR development following a request from a citizen group in June to terminate the contract and agreement with MGM Resorts. The group argued that the city has not received rent for the land despite the construction being carried out, and that it is illegal to select a construction company through a discretionary contract.
As previously reported by Inside Asian Gaming, preparatory work on the 21-hectare Yumeshima site began late last year via concrete being poured into the ground to prevent liquefaction and firm up the base on land upon which MGM’s IR will be developed. The liquefaction measures are expected to continue throughout the upcoming Osaka Expo in 2025 and be completed by April 2027 at a cost of JPY25.5 billion ($173 million).
In response to the request, the audit committee dismissed the land rent as not being illegal but said opinion was split on the selection of the construction company. NHK reported that two committee members determined there was no illegality as the order was placed by a private company, while two others said illegality cannot be eliminated as the project is essentially a public work, and that recommendations should be made to ensure sufficient fairness.
While the committee opted against taking any action, it stated, “Care should be taken to handle the construction so as not to cause doubts or suspicions among citizens.”
The latest development comes just weeks after the international organizer of the World Expo asked Osaka officials to demand construction of Osaka’s IR be halted for around six months next year due to concerns around noise and visuals during the long-awaited expo.
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