DOJ OKs case vs Okada in Entertainment City deal

A computer model of Japanese billionaire Kazuo Okada's casino resort complex development in Entertainment City near Manila Bay.

MANILA, Philippines - The National Bureau of Investigation (NBI) and the Department of Justice (DOJ) found probable evidence against Japanese gaming tycoon Kazuo Okada and 25 others linked to a $2 billion resort and gambling project.

In a 36-page joint resolution, the DOJ's and NBI's fact-finding panel on Monday recommended the filing of a case against Okada and eight other Japanese citizens as well as 17 Filipino law associates for allegedly violating the Anti-Dummy Law or Commonwealth Act 108, the Public Land Act and the Foreign Investments Act of 1991.

The Okada-owned Universal Entertainment Corp. allegedly used dummy entities to establish a mammoth casino development within the Philippine Amusement and Gaming Corp. (PAGCOR)'s Entertainment City near Manila Bay, the resolution said. (Related story: Entertainment City billed as next major central business district)

The DOJ-NBI panel also listed 10 law firms seen to be involved in the scheme to purchase a 40-hectare plot of land said to breach the minimum 60-percent Filipino ownership threshold.

The committee, meanwhile, said it is yet to conclude an investigation on a separate lawsuit against Okada lodged by American billionaire Stephen Wynn, a former business partner.

The case, which the NBI said still lacks evidence and witnesses, pins Okada for allegedly making $5 million of improper payments to gambling regulators led by former PAGCOR consultant Rodolfo Soriano.

PAGCOR has said that Universal, which has denied the allegations, should resolve the ownership issue first before the casino complex can be launched. Its target opening is in 2014.

Two unnamed Philippine firms, meanwhile, have recently expressed interest in acquiring at least 60 percent of the lot where Okada's project stands.

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