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CDC shuts down indefinitely Fontana Leisure Parks & Casino
Clark Development Corporation (CDC) has ordered the indefinite closure of Fontana Leisure Parks & Casino for failing to meet its financial and contractual obligations. The cease and desist order, issued late Tuesday, mandates that all operations at the 52-hectare property cease immediately, pending compliance with legal and regulatory requirements.
The Central Luzon-based CDC manages the Clark Freeport Zone (CFZ) and Clark Special Economic Zone (CSEZ), that cover an area encompassing Pampanga and Tarlac, and the region is considered as one of the fastest growing investment destinations in the Philippines today.
CDC cracks down on non-compliance
The CDC is acting on multiple violations by Fontana Development Corporation (FDC) and Fontana Resort and Country Club, Inc (FRCCI). These involve failure to observe financial obligations, failure to pay lease agreement provisions, and several Fire Code and National Building Code violations.
“Thus, any operations of FDC and FRCCI, including all businesses of sub-lessees, are indefinitely suspended,” stated the CDC in a public notice. The notice further warned that continued non-compliance could lead to the termination of the companies’ consolidated lease agreement dated 31 August 2016.
Immediate operational halt
The order impacts all businesses operating within the premises of Fontana, including the Korea Country Club, Inc, which operates the facility. More than 500 employees, including 346 resort staff and 229 casino workers, are left in limbo after the shutdown.
Fontana’s casino is one of seven within the Clark Freeport Zone. However, it has had a chequered history, including two previous closures in the past decade.
History of Fontana
In 2020, Fontana faced a high-profile shutdown after authorities discovered an illegal makeshift hospital on its premises, allegedly catering to Chinese citizens suspected of COVID-19. Earlier, in December 2016, the casino operations were halted following the arrest of approximately 1,300 undocumented Chinese workers.
These incidents occurred under the ownership of Jack Lam, a former Macau junket operator. Lam was accused of bribery in a scandal that eventually led to his departure from Jimei International Entertainment and the revocation of its gaming licences by the Philippine Amusement and Gaming Corporation (PAGCOR).
Fontana’s operations resumed in 2019 under new ownership but continued to face regulatory scrutiny.
Economic fallout and next steps
The closure of Fontana has significant implications for the local economy, with hundreds of workers left in limbo. Businesses within the leisure park, which depend on the resort and casino for foot traffic, are also impacted.
The CDC has emphasised that the companies must comply with all financial and regulatory obligations to resume operations. Until then, the indefinite suspension remains in place.
Wake-up call for operators
The recent shutdown was an eye-opener for Clark Freeport Zone operators to stick to their promise. Regulatory compliance cannot be negotiated; the government will not hesitate to take rigid action against erring operators.
As Fontana grapples with its third closure in less than a decade, the management will be on the spot regarding whether it will solve these longstanding issues and regain public trust.
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