The Clark Development Corp issued on Monday a cease and desist order against Fontana Development Corp and Fontana Resort and Country Club Inc, suspending indefinitely the operation of Fontana Leisure Parks & Casino at the Clark Freeport Zone in the Philippines.
The order against the companies was “effective immediately, for failing to meet their financial and contractual obligations to the state-owned firm,” said Clark Development Corp in a Tuesday statement.
The order directs the two companies “to immediately stop all operations, indefinitely, within their leased area, including the 52-hectare [128.5-acre] property currently managed by Korea Country Club Inc, pending compliance with their contractual obligations,” it added.
The state-run entity said Fontana Development Corp committed “numerous violations,” including “failure to meet financial obligations, non-fulfilment of commitments under the lease agreement, and non-compliance with the Fire Code and National Building Code, among others”.
The Clark Development Corp said that failure to comply with the order could lead to other enforcement actions, including terminating the lease agreement.
The closure of the complex affects more than 500 employees said the news outlet Rappler, including 229 from the casino.
The outlet reported that casino employees are managed separately by the Clark Resort Travel and Amusement Corp, citing Joseph Manalili, casino internal security supervisor.
Mr Manalili told Rappler that salary delays for casino employees began in 2023, and they have since sought assistance from the Clark Development Corp and the country’s Department of Labor and Employment.
