DULY NOTIFIED Streamers and notices on the cease-and-desist order issued by the Clark Development Corp. have been displayed in different parts of Fontana Hot Spring Leisure Parks inside the Clark Freeport. —Photo courtesy of CDC
MABALACAT CITY, PAMPANGA, Philippines — The Clark Development Corp. (CDC) has issued a cease-and-desist order against the developer and operator of the Fontana Hot Spring Leisure Parks located in the Clark Freeport for failing to fulfill their financial and contractual obligations to the government.
In a statement on Tuesday, Astrud Aguinaldo, CDC communications division manager, said the shutdown order was issued on Monday against Fontana Development Corp. (FDC) and Fontana Resort and Country Club Inc. (FRCCI).
“The order directs FDC and FRCCI to immediately stop all operations, indefinitely, within their leased area, including the 52-hectare property currently managed by Korea Country Club Inc. (KCCI), pending compliance with their contractual obligations,” the CDC said.
The Fontana estate, spanning approximately 300 ha inside the Clark Freeport, includes a 103-ha area utilized by FRCCI. This portion houses 278 residential villas, a water theme park, hot springs, picnic areas, a clubhouse, recreational facilities, a 127-room hotel and a function hall.
Additionally, the estate features a casino operated by a separate entity, Clark Resort Travel and Amusement.
In a message to the Inquirer on Wednesday, the CDC said FDC and FRCCI failed to pay rent obligations amounting to P203 million as of Dec. 23, 2024.
It said FDC also allowed the occupancy of some villas without the prior approval of CDC.
It was learned that the lease agreement stipulates that the FDC must inform the CDC about the sale or long-term lease of its villas.
On June 28 last year, FDC issued a statement that it no longer owned the three villas inside the leisure estate that were raided by authorities for Philippine offshore gaming operator-related human trafficking. It said villas were already sold to their current owners in 2014.
The CDC also said that Fontana had failed to obtain CDC’s prior written consent or approval for its construction activities and other related improvement activities in the leased property and failed to comply with pertinent provisions of the National Building Code of the Philippines.
FDC also failed to submit a revised development plan to the CDC prior to its construction activities inside the leisure estate.
Third closure
The recent closure order issued by the CDC was the third time Fontana had faced such action.
On Dec. 5, 2016, the CDC first issued a cease-and-desist order against Fontana following the Department of Justice investigation into alleged illegal gaming operations within the estate. However, this order was lifted on Dec. 22, 2016, allowing Fontana to resume operations.
On May 20, 2020, the CDC issued another cease-and-desist order after authorities discovered an unlicensed makeshift medical facility inside one of Fontana’s villas. The facility was reportedly used to treat Chinese COVID-19 patients during the height of the pandemic. The leisure park was also locked down. This restriction, however, was lifted just 10 days later.
The Inquirer tried to reach both FDC and FRCCI on Tuesday but they had yet to respond to requests for comments regarding the latest closure.