Presidential spokesperson Edwin Lacierda PHOTO/INQUIRER
MANILA, Philippines–The license issued to Universal Entertainment Corp. of Japanese billionaire Kazuo Okada to operate a casino on reclaimed land on Manila Bay would be canceled if found to have been obtained through bribery, Malacañang said Monday.
US regulators are investigating a $5-million payment by affiliates of Universal to Rodolfo Soriano, then a consultant of the Philippine Gaming Corp., in exchange for concessions on the $2-billion casino project.
Secretary Edwin Lacierda, President Benigno Aquino III’s spokesperson, said Pagcor officials have referred charges of bribery involving Universal and Soriano to the Department of Justice for investigation.
“If there’s proof that the license was obtained through bribery, then there may be reasons to consider canceling the contract,’’ Lacierda said in a briefing in Malacañang.
Universal won a provisional license to operate a casino in the Philippines when it paid about $300 million for land as part of the Manila Bay project. It began building the casino facing the bay in January, promoting it as a VIP destination resort for China’s newly rich.
It acquired reclaimed land on Manila Bay in 2008, and announced plans to build Asia’s largest aquarium, a Ferris wheel and a 2,050-room hotel and casino.
Reuters reported that the $5 million was part of the $40-million fund transfers by Universal’s Aruze USA in the first half of 2010 while Universal was seeking tax and ownership-related concessions in the final months of the Arroyo administration.
Lacierda said the Executive Branch would not “countenance’’ any finding of bribery in the grant of license to Universal.
“If there are allegations and proof that the award was granted through some form of bribery, then certainly we will not countenance that,” he said. “If there’s any proof on the allegations of bribery, then this is something that we will not countenance.’’
Lacierda, however, stressed that the allegations of bribery should go through the regular process of investigation by the Department of Justice.
Soriano allegedly served as bagman of then Pagcor chair Ephraim Genuino.
Soriano, Genuino and 16 other former Pagcor officials are facing plunder charges for alleged malversation of public funds and goods amounting to more than P100 million.
Incumbent Pagcor chair Cristino Naguiat and Genuino were identified earlier this year in a lawsuit filed by Wynn Resorts in a district court in Las Vegas as the two Pagcor executives for whom Okada had spent $110,000 to curry favor with them.
Wynn Resorts chief executive Steve Wynn accused Okada of violating the US Foreign Corrupt Practices Act through alleged payoffs made to the two gaming officials.
Okada, a director at Wynn Resorts, was alleged to have gone behind the back of the company to develop a business for his own Universal Entertainment Group in the Philippines.
The lawsuit said that Naguiat, his wife, three children and nanny received free accommodations at a luxury suite in Wynn Macau, that they were assigned the casino’s best butler and that he requested and received a $1,878 Chanel designer bag for his wife. Naguiat said he returned the bag.
The suit also claimed that Okada spent $50,000 on Naguiat’s visit in September 2010, including $20,000 in cash given to the Filipino delegation for shopping and gaming. Okada told Wynn investigators that he had paid for Genuino’s trip to Beijing for the 2008 Olympics.
Lacierda on Monday said he has no update on the investigation pertaining to the charges against Naguiat.
At the House of Representatives, a lawmaker has urged the government to halt Pagcor’s Entertainment City project following information which indicated possibly more anomalies.
Bayan Muna Partylist Representative Teddy Casiño said that the project should be suspended following the release of evidence which pointed to further anomalies involving Pagcor officials and Okada.
He called on fellow lawmakers to tackle House Resolution 2809 which sought an investigation and suspension of the project.
“We will have to include new pieces of evidence unearthed by Reuters news agency that can help complete the picture of corruption in Pagcor,” Casino said, adding that anomalies may have even reached Pagcor’s new management. With a report from Karen Boncocan, INQUIRER.net