CDC: Crypto firm has no permit to operate in Clark | Inquirer News

CDC: Crypto firm has no permit to operate in Clark

/ 04:30 AM May 09, 2023

MABALACAT CITY—The cryptocurrency company raided by the police last week for the human trafficking of Filipino and foreign workers was not a registered business enterprise at the Clark Freeport Zone, the state firm Clark Development Corp. (CDC) said.

The CDC Business Development and Business Enhancement Group said in a statement on Sunday that the Colorful and Leap Group Co. (CLGP) was not among the enterprises that were issued permits to operate inside the free port zone.

Authorities led by the Philippine National Police-Anti-Cybercrime Group (PNP-ACG) raided CLGP on May 4 and rescued 919 foreign and 171 Filipino employees subjected to forced labor.


According to the CDC, the buildings in the 2.5-hectare area that the PNP-ACG raided were being subleased to CLGP by the Sun Valley Clark Hub Corp. (SVCHC), which in turn was only leasing the property from Donggwang Clark Corporation II.


Space rental

The CDC said Donggwang II, a registered business enterprise, has been leasing a 300-ha area in Clark Freeport for mixed-use development. The CDC also approved the sublease agreement between Donggwang II and SVCHC in January 2019.

Citing records, the CDC said SVCHC has an approved business activity of renting out office and business spaces, as well as providing residential spaces.

But the CDC said it would not tolerate any illegal activities inside the free port zone, assuring the public that all registered business enterprises in the economic zone are compliant with existing laws and regulations.

But it did not explain why an unregistered company managed to operate illegally or why the alleged human trafficking of hundreds of foreigners and Filipinos happened in Clark without its knowledge.

On May 6, formal complaints were filed at the Department of Justice against 12 operators of the company, according to the PNP-ACG. The 12 consisted of seven Chinese nationals, four Indonesians and one Malaysian.




SEC studies new rules for cryptocurrencies 

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TAGS: CDC, Clark, currency

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