Vanderwood casino contract advantageous to gov’t – Pagcor

The Philippine Amusement and Gaming Corp. (Pagcor) maintained that the contract with Vanderwood Management Corp. is advantageous and beneficial to the government.

The House of Representatives has recently conducted an inquiry on the P3.2 billion casino space lease contract Pagcor signed in November 2014 with Vanderwood.

Former Pagcor officials led by chairman Cristino Naguiat Jr. advanced P234 million to Vanderwood for the space in a hotel, which is being constructed at the former site of the Army and Navy Club near the Luneta Park in Manila.

The Manila city government owns the property and leased it to Oceanville Hotel and Spa Corp. for P300,000 a month. Oceanville, in turn, sublet it for the same amount to Vanderwood, which leased 6,500 square meters to Pagcor for P13 million a month.

However, Pagcor said there was nothing irregular about the transaction.

“Not only is the transaction completely legal, but it is also highly beneficial and advantageous to the Filipino people – as the transaction translates to savings for Pagcor in the amount of at least P187 million annually and projected revenues in the amount of P59.17 billion,” Pagcor said.

In 1989, Pagcor initially entered into a lease contract with Gatchalian- owned Acesite (Phils) Hotel Corp. (Acesite) covering the Manila Pavilion, which the regulator utilized for its operation of a casino.

By 2016, Pagcor was paying Acesite more than P28 million a month for its Manila Pavilion facility.

On the other hand, Pagcor said it would only pay P13 million a month for Vanderwood or P156 million a year. This is lower than the P28 million a month or P336 million annual rent charged by Acesite.

Pagcor also said there was nothing illegal with the transaction.

“Noting that the lease agreement was set to expire on Dec. 30, 2016, Pagcor already started preparing for the documents and other requirements necessary in its lease of premises for a fully-fitted casino gaming facility – almost two years before the contract’s expiration. Request for Quotations ( RFQs) were sent to and acknowledged by fifty-seven prospective lessors, including Acesite,” it said.