Duterte also fires board of local partner
Shares of Hong Kong-listed Landing International took a dive after the sudden cancellation of the firm’s planned $1.5 billion entertainment theme park, NayonLanding, in Manila’s Entertainment City.
The project was shelved just as Landing and its local partner, Nayong Pilipino Foundation, broke ground at the site. Philippine President Rodrigo Duterte also fired the whole NPF board.
The shocking news was announced by presidential spokesperson Harry Roque at a press conference shortly after the groundbreaking. Roque said the project’s 70-year land lease was “ridiculous,” “unconscionable” and possibly part of a sweetheart deal that involved NPF.
“Sorry to burst your bubble, people, but the president said that is grossly disadvantageous to the government,” said Roque. He went on to say that Duterte “was sacking all members of the board and management of Nayong Pilipino. The papers formally terminating them will be issued in due course.”
According to Reuters, in May Duterte’s niece and NPF board member Maria Fema Duterte alleged that her fellow board members agreed to a bargain-basement lease price that would cost the government PHP517 million (US$9.7 million) per year.
The Philippine Inquirer reports that NPF Chairwoman Patricia Ocampo was about to give a speech at the NayonLanding groundbreaking when she learned she had been fired. She pointed out that the initial lease term of the project was for 25 years, not 70 years, and tearfully denied allegations of corruption in the matter.
But she bowed to Duterte’s will. “On behalf of the board of trustees of the Nayong Pilipino Foundation, I would like to thank the president for having been given the opportunity to serve the Filipino people. It is regrettable that it has come to this, but we understand that we serve at the pleasure of the president,” she said.
In a statement, Landing said the decision to oust the NPF members “did not affect the validity of the subject contract of lease.”
“Landing International Development Ltd., together with its subsidiaries, wishes to convey that its integrated resort project is still pushing through and its lease contract with NPF is still valid and effective,” the company told Inside Asian Gaming. “Unless the lease contract is canceled or nullified on legal grounds by the courts, Landing has reason to believe that it is a valid leaseholder and can legally proceed with its project.”
The 25-acre, family-friendly resort complex, set to open in 2020, was to have included a convention center, hotels, offices and commercial facilities, as well as the world’s second largest indoor waterpark, a cultural theme park, a movie theme park and a casino.
“It will be a family, leisure, entertainment integrated resort,” said Landing COO Jay Lee at the groundbreaking. “We will have a huge attraction business which differentiates us from the existing competitors. It is something that Manila lacks. Manila has such a huge domestic population but there is no core family attractions currently meeting that market. That immediately positions us differently.
“The second thing that will position us is the MICE component,” Lee added. “Our ballroom will seat 5,000 people and will also allow us to do a lot of concerts and shows that will differentiate us.”
Landing Chairman and Executive Director Dr. Yang Zhihui added that the integrated resort would “create up to 10,000 jobs and attract an additional 2 million to 3 million foreign visitors” a year.
In a report about Duterte’s “latest firing spree,” Nikkei Asian Review quoted spokesman Roque, who said the mass termination at NPF was part of the president’s “campaign against corruption.”
Duterte himself simply said, “I hate gambling. I do not want it. There will be no casinos outside of what are existing. I am not granting anything.”
