‘Dummy’ violations: VACC files case against Jack Lam

VACC chair: Gaming tycoon, et. al. have violated Anti-Dummy Law

According to the watch group, the former officials of Fort Ilocandia violated the law when they allowed Jack Lam, a Chinese national, to operate the hotel

THE Volunteers Against Crime and Corruption (VACC) yesterday filed charges with the Department of Justice (DOJ) against gaming tycoon Jack Lam and four other former officials of Fort Ilocandia Hotel and Casino in Laoag, Ilocos Norte for “violation of the Anti-Dummy Law.”

In an eight-page complaint-affidavit, VACC Chair Dante Jimenez said Lam, the director of Fort Ilocandia, as well as its former president Rosanno Niscem, former chairman of the board of directors Siu Wah Chung, former treasurer and director Edgar Lim, and former secretary and director Jose Riberto Mumuric all violated Section 2-A of the Commonwealth Act No. 108, as amended by Presidential Decree No. 715, or the Anti-Dummy Law.

The following are former stockholders of Fort Ilocandia for the periods relative to the complaint filed by the VACC.

According to the “watch group,” the former officials of Fort Ilocandia violated the law when they allowed Lam, a Chinese national, to operate the hotel.

Articles of Incorporation

The VACC in its complaint said the primary purpose of Fort Ilocandia, as stated in its Articles of Incorporation, is to “own, use, improve, develop, subdivide, sell, exchange, lease, and hold for investment or otherwise, real estate of all kinds, including buildings, houses, apartments and other structures.”

“Such rights and undertakings are activities where foreign ownership and involvement is restricted under the Philippine laws,” the VACC said.

According to VACC, there is a violation of the Anti-Dummy Law when a qualified Filipino citizen allows a foreign citizen or non-qualified person to enjoy rights, privileges, franchise, property or business, as the exercise of which is limited to Filipino citizens.

The group said that through corporate layering, Fort Ilocandia, through its dummy companies, its directors and officers, were able to “use and exploit” real property in the Philippines.

“Pursuant to the Asset Purchase Agreement, Fort Ilocandia was able to operate, own and control the above stated assets including the real property wherein the Hotel is situated. Fort Ilocandia is able to exploit a right the enjoyment of which is limited to Filipino citizens and corporations,” the affidavit read.

Fort Ilocandia is a partner establishment of Fontana Casino Hotel in Clark, Pampanga, both owned by Lam, who is now the subject of the probe being conducted by the National Bureau of Investigation, the Parañaque Prosecutor’s Office and the Bureau of Immigration.

President Rodrigo Duterte earlier ordered the arrest of Lam for bribery and economic sabotage for allegedly attempting to pay Justice Secretary Vitaliano Aguirre II in relation to the arrest of 1,316 undocumented Chinese nationals at his online gaming operations in Pampanga.