Council endorses casino to PAGCOR

CEBU, Philippines — The Cebu City Council has approved the resolution endorsing the application to build an integrated resort and casino facility at the former Kawit Island at the South Road Properties to the Philippines Amusement and Gaming Corporation (PAGCOR).

In a 7-5 vote, the legislative body approved the resolution authored by Councilor Eugenio Gabuya, Jr. during the regular session yesterday.

"The Universal Hotels and Resorts Inc… intends to contribute in making Cebu City as the newest tourism destination in the country by developing and operating a PAGCOR-accredited and world-class integrated resort and casino facility," reads a portion of the measure.

Frederick Go, president of Universal Hotels and Resorts, Inc., sent a letter to the City Council requesting the body to issue a "resolution of no objection" to the company's plan to build an integrated resort and casino facility in the city.

Bando Osmeña-Pundok Kauswagan-allied Councilors supported Gabuya's resolution. They were Councilors Margarita Osmeña, Sisinio Andales, Joy Augustus Young, Alvin Arcilla, Jerry Guardo, and David Tumulak.

On the other hand, Barug Team Rama-allied Councilors Jose Daluz III, Jocelyn Pesquera, Raymond Alvin Garcia, Pastor Alcover, and Eduardo Rama were against the passage of the resolution.

Garcia questioned the non-inclusion of the specific location where the company will construct and operate the facility, which was later amended by Gabuya and specified that it will be constructed at Kawit.

"You have to identify the area. Then you ask the permission of PAGCOR whether or not they will grant you a franchise to operate a casino. That should have been the case and the proper procedure not like how it is now," Garcia said.

Gabuya said the company is affiliated with JG Summit which was previously announced to invest P18 billion unsolicited proposal at Kawit Island.

Garcia, however, said the city government should be cautious, saying that it would be a "Merry Christmas" gift from the city to the "favored" company.

"We are being presumptuous here. Sa ato pa kay gihatagan gud nato og authority nga magtukod og casino ang Universal resorts sa ato pa ang Universal resorts na ang makadaog sa bidding? After the unsolicited proposal if ever it does arrive, we are really sure nga sila ang makadaog?" he asked.

"It is subject to a Swiss challenge. Mura man ta og naghatag og pabor diri without even passing through the entire process which must be followed as mandated by law," he added.

Pesquera said the measure's approval is still premature as JG Summit has yet to submit its project proposal to the city government.

"This is premature. There is no approval from the city government on the utilization of the property yet…If we will proceed with it, we will be giving undue advantage to Universal Hotels and Resorts, Inc and we will be liable for that under the Code of Conduct," she said.

Gabuya said it is up to PAGCOR central office whether or not to approve the application of the company.

Daluz, for his part, said Kawit Island was given by the Department of Health to the city government.

He said the city should look into the agreement with DOH whether or not the construction and operation of a casino facility are allowed.

Daluz agreed with Pesquera's opinion that approving the resolution would mean that the city government should also approve the P18-billion unsolicited proposal of the JG Summit.

"We cannot approve in piecemeal. We will be in estopped now of granting the whole proposal since we endorsed the project. We should study the terms and conditions first. The terms and conditions of whatever activity there will be part of the whole memorandum of agreement that the city will enter into with the company," he said.

However, Barug Team Rama officials failed to convince the administration bloc to put on hold the passage of the resolution pending the comments and recommendation from the City Legal Office. (FREEMAN)