The Clark Development Corporation (CDC) has issued a cease-and-desist order against Fontana Development Corporation (FDC) and Fontana Resort and Country Club Inc. (FRCCI), halting all operations of the Fontana Leisure Parks and Casino in the Clark Freeport Zone, Philippines. The order, effective immediately, stems from the companies’ failure to meet financial and contractual obligations, along with violations of the Fire Code and National Building Code.
Clark Development Corporation halts Fontana operations:
In its official statement, the CDC clarified that the suspension includes the 52-hectare property managed by Korea Country Club, Inc. (KCCI). As GMA Network reports, the state-run CDC emphasized that Fontana’s inability to comply with its obligations under the lease agreement could result in the termination of the lease.
This is not the first time Fontana has faced regulatory action. In December 2016, the complex was shut down after 1,300 illegal Chinese workers were arrested. This led to allegations of bribery involving the former owner, Macau junket operator Jack Lam, who later exited the business. The casino was again ordered to suspend operations in 2020 when an illegal makeshift hospital catering to Chinese COVID-19 patients was discovered on its premises.
Despite its reopening in 2019 under new ownership, Fontana has continued to face operational difficulties. Most recently, on December 17, 2024, the complex lost power due to unpaid electricity bills, which were only settled two days later.
As GGRAsia reports, the closure affects over 500 employees, including 346 from the resort and 229 from the casino. According to casino internal security supervisor Joseph Manalili, employees have faced delayed salaries since 2023. He explained that the delays impacted both resort and casino workers, who have no union representation and are employed under different entities, including the Clark Resort Travel and Amusement Corporation (CRTAC).
“The salary is often delayed. Sometimes, we receive it first; other times, the resort employees do. There are times when we only get part of our salary for the month,” Manalili said, noting that the 13th-month pay for 2023 was disbursed in installments months after it was due.
Manalili added that the casino remained operational with a skeleton staff before the latest cease-and-desist order, with maintenance workers ensuring the equipment and premises were secured.
Meanwhile, Fontana employees have filed complaints with the Department of Labor and Employment (DOLE) and the National Labor Relations Commission (NLRC), with hearings scheduled for February 2025.
Persistent violations highlight ongoing issues:
The CDC’s recent decision highlights ongoing contractual and financial compliance issues at Fontana. According to Rappler, the CDC noted that the companies have consistently failed to fulfill commitments outlined in their consolidated lease agreement from 2016. The violations range from unpaid obligations to non-compliance with national codes, adding to the complex’s history of regulatory troubles.
Fontana’s closure underscores broader issues within the Clark Freeport Zone, where other entities have also faced scrutiny. In June 2024, the Presidential Anti-Organized Crime Commission raided villas within Fontana Leisure Parks, discovering a Chinese fugitive linked to a controversial local figure.
The future of Fontana Leisure Parks and Casino remains uncertain, with CDC officials emphasizing that operations can only resume once all violations are addressed and contractual obligations are fulfilled.
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Vanja Mitic 2025-01-08 15:10:59
