Traders work the floor at the PSE in this file photo. Analysts said the market is not seen to be impacted long term by the fallout from the bribery allegations against one of the four key players in the ambitious PAGCOR Entertainment City. BERNARD TESTA, INTERAKSYON.COM
InterAksyon.com
The online news portal of TV5
MANILA, Philippines ? The possibility that a local affiliate of Japanese gaming billionaire Kazuo Okada, hounded by bribery inquiries here and abroad, may lose its license to join the $2-billion integrated leisure complex called PAGCOR Entertainment City is not seen to impact the market long term, as the state gaming agency has other options.
This was the view of analysts interviewed separately late Monday.? Astro del Castillo, managing director at First Grade Finance Inc., said the issue may be a "temporary setback" for the local gaming industry, but pointed out that Pagcor can opt to negotiate with other casino operators if the Okada group is proven to have bribed an official of the state-run agency.
Malacanang Palace and PAGCOR on Monday said Okada?s affiliate, Tiger Resorts Leisure Entertainment Inc., may be stripped of its license once it?s proven that bribery attended the Okada group?s transactions with PAGCOR under its former chairman Ephraim Genuino, during the Arroyo administration.
An exclusive Reuters report posted Sunday by InterAksyon.com said US probers in Nevada were checking allegations that Okada?s Universal Entertainment Corp. funneled $5 million to Rodolfo Soriano, a mere consultant---believed to be a ?bagman?---of Genuino at the time that Okada?s affiliate was seeking concessions from PAGCOR for the Manila Bay project.
The document trail connecting Soriano to the $5-million payment has not been previously reported.
Oversupply of casinos?
Even if Okada?s affiliate loses its license, however, analysts point to other issues that will affect the market reaction to such development in a big-ticket project.
Joseph Roxas, president at Eagle Equities Inc., said there are concerns of an oversupply of casinos once the integrated entertainment projects of Pagcor licensees -- Okada group, Belle Corp, Alliance Global Group Inc and Bloomberry Corp -- come on stream in Entertainment City. These do not include the existing Pagcor casinos and Alliance Global's Resorts World Manila just across the Terminal 3 of Ninoy Aquino International Airport.
"If you really think the market is good enough to accommodate all the players, Pagcor can just terminate the contract, rebid the license and who knows? the government may get a better value for it," Roxas said.
Freya Natividad, investment analyst at 2Trade Asia.com, said the bribery issue may cause delays in the development of Tiger Resorts, resulting in additional costs for the parties involved.
No local gaming partner
But the issue will not have a big impact on the stock market in the absence of a local gaming partner of the Okada group, Natividad added.
Sy-led Belle has tapped Macau casino operator Melco Crown Entertainment Limited, Alliance Global of Andrew Tan has forged a partnership with Genting Hong Kong, while Razon-led Bloomberry has hired Las Vegas-based Global Gaming Asset Management.
"The Okada group has no partner on the gaming side. We are aware the group is in talks with various companies, but they are just in the due diligence stage," Natividad said.
Gokongwei-led Robinsons Land Corp had said it is in talks with the camp of Okada to run the gaming and retail operations of the $2-billion Tiger Resorts project.
Empire East Land Holdings Inc. had inked a partnership with the Okada group for the development of a luxury residential resort condominium project in the reclaimed area along Manila Bay.
In a press briefing Monday, Lacierda said PAGCOR Legal Counsel Jay Santiago has already referred the bribery allegations to Secretary Department of Justice Leila de Lima.
??If there is a proof that the license was obtained through bribery, then there may be reasons to consider cancelling that license,? Lacierda told reporters Monday in a press briefing at the Palace.
The Reuters report cited a trail of documents like bank records, corporate filings and court papers, among others, to indicate the? payment was made by Okada?s affiliate.
The Reuters report also said that the transaction was made during the administration of former President Gloria Macapagal Arroyo, in whose nine-year term Genuino was considered one of the most powerful officials.
Universal Entertainment is one of the four groups that won in the bidding and was awarded licenses to operate a casino in PAGCOR?s 120-hectare integrated tourism and entertainment complex called the Entertainment City, along a reclaimed area on Manila Bay, near the Manila international airport?s three main terminals.
Congressional inquiry
Two lawmakers---party-list Rep. Teddy Casino and Sen. Miriam Santiago are pushing for a full-blown investigation into the Pagcor project.
Casino also asked the House of Representatives to move on his House Resolution 2809, filed months earlier, calling for an investigation of the project. ?It is high time that Congress immediately set a hearing for House Resolution 2809 calling for an investigation and, in the meantime, a suspension of the project, considering that a lot more anomalies have been unearthed regarding this Sin City,? he said.
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