Nothing wrong in P234-M Pagcor advance payment – casino operator

MANILA, Philippines -  The casino operator behind the controversial Army Navy Club rental deal with the Philippine Amusement and Gaming Corp. (PAGCOR) clarified that there was nothing irregular in the P234-million advance rental fee paid by the government gaming agency.

In a statement sent to The STAR, Vanderwood Management Corp. board chairman Manuel Sy also pointed out that the new casino to be put up at the Museong Pambata Complex along Roxas Boulevard in Manila is a “fully fitted” gaming facility that is tailor-made to PAGCOR’s standards.

Sy stressed that there is nothing anomalous in the P234 million paid by PAGCOR representing 12 months’ advance rental and six months’ security deposit since advance payment is common in standard lease contracts.

“While the building did not exist at the time the lease was agreed upon, the payment of advance rentals and security deposit formed part of the consideration, without which, Vanderwood would not have entered into the contract,” Sy said in a position paper submitted to the House committee on good government and accountability, chaired by Surigao del Sur Rep. Johnny Pimentel.

Pimentel has started an inquiry into the alleged highly anomalous P13-million per month lease of PAGCOR of a portion of the Army Navy Club property to Vanderwood where a casino will be put up.

The committee specifically questioned PAGCOR’s move to pay Vanderwood P234 million in advance rental payment even as the gaming facility has yet to be constructed at the site.

 Sy said the Vanderwood casino “sufficiently caters to PAGCOR’s needs and is tailor-made for PAGCOR’s accommodation.”

Echoing the stand of former PAGCOR chair Cristino Naguiat, Sy also claimed that the project is beneficial to the government compared to the Manila Pavilion casino where PAGCOR is paying P28 million a month to Acesite.

As lessor, Vanderwood has so far received only P234 million advance payment from PAGCOR upon the execution of the lease agreement as compared to P405.16 million received by Acesite, he added.