PRESIDENT Rodrigo R. Duterte on Tuesday fired the entire board of the Nayong Pilipino Foundation (NPF) for approving a “grossly disadvantageous deal,” on the same day a Chinese firm broke ground on a $1.5-billion integrated resort and casino on the foundation’s property.
Nayong Pilipino logoPresidential Spokesperson Herminio L. Roque, Jr. said the president announced the sacking of the NPF officials at the Cabinet meeting on Monday, with official papers for their termination to be issued “in due course by the Executive Secretary.”
“He cited the case of Nayong Pilipino which leased government property for a ridiculously long period of time of 70 years, beyond the lifetime of anyone. And he considered this a contract which was grossly disadvantageous to government,” Mr. Roque said in a briefing on Tuesday.
Mr. Roque said the president “will have the (lease agreement) canceled as being grossly disadvantageous to government.” The government’s preferred period is 25 years.
The sacking of the NPF officials coincided with the groundbreaking ceremony held by Chinese casino operator Landing International Development Ltd. on an integrated resort and casino project called NayonLanding. The development will rise on a 95,700 square meter (sq.m.) site leased from the NPF for 25 years, which can be extended for another 25.
Asked whether Mr. Duterte was referring to Landing International’s project when he called the deal “disadvantageous,” Mr. Roque said the president has yet to provide details.
Reuters reported that the Chinese casino deal will be canceled, though Mr. Roque was quoted as saying by the news agency that the proposed rental arrangement is “unconscionable.”
In a statement, NPF Chairperson Patricia Ocampo rejected accusations that the board and management were involved in a graft-ridden deal with Landing International. She, however, accepted the president’s termination of her leadership.
“I strongly deny that there was graft and corruption. On the contrary, the lease contract with Landing International is above-board, and is highly advantageous to the Filipino people,” Ms. Ocampo said.
NPF clarified that monthly rental for the 9.5-hectare property was P360 per sq.m., with an advance rental of P827.05 million. The foundation will also be collecting an additional monthly rental equivalent to 10% of net profit from the operations on the site.
“We negotiated what we believed then, and believe now, are most advantageous terms and conditions for the government and the people,” Ms. Ocampo said.
Landing International said it will continue to pursue the project, which will consist of an indoor cultural theme park and waterpark, including plans for what it claims is the first and largest indoor movie-based theme park in Asia. It will also offer around 1,500 luxury hotel rooms, a convention center with a ballroom that can seat 4,000 guests, a shopping mall, and a casino.
Landing International said two-thirds of the site will be dedicated to gaming, while one-third will be for the non-gaming component, with an intended market of visitors from China, Taiwan, Hong Kong, South Korea, and Southeast Asia.
In a media briefing before the project’s groundbreaking ceremony, Landing International Chief Operating Officer Jay Lee said the company’s chairman met with the president during one of his overseas trips.
“I think we started looking at this investment more than a year ago. In one of the visits of the president overseas… our chairman was able to meet up with the president. That was a year ago, and he said he welcomed foreign investors,” Mr. Lee said.
In a separate statement on Tuesday afternoon, Landing International said the removal of the NPF officials will not affect its project.
“From the group’s viewpoint, the recent decision of the Philippine government to replace members of the NPF board of trustees did not affect the validity of the subject contract of lease,” the company said.
“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,” it added.
Landing International further noted that it has a provisional license from the Philippine Amusement and Gaming Corp. that allows the company to operate a casino in 2022, provided that it complies with all requirements set by the law. The company is scheduled to commence operations on the casino component of NayonLanding that year. — Arra B. Francia

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