Galaxy’s gamble

The story of Macau-based Galaxy Entertainment Group’s planned entry in the Philippines has now taken so many twists and turns.

When I broke the story last year that they were betting big on the country, I didn’t expect it to be this controversial. Some foreign journalists covering the gaming industry have been asking me what’s going to happen.

I said I honestly don’t know. It’s quite confusing, and as with many things here in the country, the situation gets weirder by the day. The Chinese investors themselves are probably as puzzled as we all are.

Now President Duterte wants Boracay to be distributed to farmers, saying the island would be a “land reform area” because it is classified as agricultural and forest land, and subject to distribution.

Here’s what I gathered from sources from the local government of Boracay.

The Galaxy Group has not started any construction work on the 23.3-hectare site, which is classified as residential, commercial, and industrial based on the zoning ordinance of the municipality of Malay.

Proponents have not moved the shovel, LGU sources said.

LGU sources also said the project site is not covered by the Comprehensive Agrarian Reform Law (CARL) of 1988 and this is supported by a certification from the DAR provincial office of Aklan. Where is the site exactly? Sources said the site is in the southeast of Boracay, opposite the critical habitat area, which is in the northeast.

For reference, Boracay’s Long Beach — the densely populated area and the site of the beach parties — is in the northwest and southwest. The “cesspool” or Bulabog Beach is in the east.

The country’s cadastral map identifies the property for Galaxy’s casino resort as alienable and disposable, and not forest or timberland.

It’s no surprise that Ordinance No. 272, Series of 2009, declared certain areas in Boracay, including the project site, as general commercial or tourism zone.

The Sangguniang Panlalawigan of the province of Aklan approved the zoning ordinance. What happens next will depend on Duterte. Amidst all the confusion, the gaming regulator, which has already issued a provisional license to Galaxy, said the group is very much concerned with the environment.

“Galaxy is not only the biggest and most prestigious gaming company in Asia, they are also very environmentally concerned,” Pagcor chairperson and CEO Andrea Domingo said.

The planned development will be an eco-friendly, low-density, high-end resort, proponents have committed to Pagcor.

Nevertheless, Domingo said, the group still needs to comply with all the requirements and go through a tedious process to be able to get a full license.

This means that soil and water testing, tree mapping and flora and fauna inventory will be conducted as part of the government required environment impact study.

It’s now up to the local and national authorities to make sure that Galaxy indeed will comply with all the requirements if they would be allowed to push through with their project.

But first Duterte and the LGU have to resolve the apparent differences in legal basis used in classifying certain areas of land in the island and even the ownership.

The issue is far from over, I am sure. There will be more twists and turns.

Corporate governance advocates throw support to CJ Sereno

Chief Justice Maria Lourdes Sereno has found an ally in the country’s corporate sector.

In a letter signed by its acting chair Rex Drilon, the Center for Excellence in Governance, or CEG, has expressed great concern on the current efforts to compel Chief Justice Maria Lourdes Sereno to immediately resign, saying the move “would effectively deprive her of the legal process mandated by our Constitution for resolving complaints filed against her.”

“We urge our legislators in both houses of Congress — the members of the House of Representatives, and should Chief justice be impeached, the members of the Senate, to be circumspect in the exercise of their respective roles in the impeachment process. We enjoin them to utilize impeachment proceedings as an opportunity to strengthen rather than weaken our democratic institutions,” the CEG said. The Constitution, they said, must reign supreme. CEG is a consortium of institutions committed to raising governance standards in the country through the Institute for Solidarity in Asia, the Institute of Corporate Directors, the Center for School Governance and the Center for Family Advancement.

The PSE’s dream

The Philippine Stock Exchange’s dream to have a unified capital market remains elusive as the Securities and Exchange Commission said the bourse operator remains non compliant with the ownership requirements needed for it to be able to acquire the PDS Group.

Its share purchase agreements with the stakeholders of the PDS have already lapsed last March 31. But the PSE is not about to throw in the towel just yet.

As of this writing, the PSE has not advised its counterparties to the share purchase agreements that it would no longer seek an extension of the SPA.

“PSE is committed to its vision to unify the fixedincome and equities markets and enable all stakeholders to reap the accruing benefits of an integrated capital market,” it said.

Finance Secretary Carlos Dominguez isn’t convinced. He is surprised that after all this time the PSE still cannot comply with the law.