On Monday, the Clark Development Corp filed a cease and desist order against Fontana Development Corp and Fontana Resort and Country Club Inc, thereby suspending 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,” Clark Development Corp stated on Tuesday.
The injunction tells the two businesses “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,” according to the document.
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Fontana Development Corp, according to the state-run organization, 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 stated that failing to comply with the order could result in additional enforcement steps, including the termination of the leasing agreement.
According to Rappler, the complex’s shutdown will affect more than 500 employees, including 229 from the casino.
The Clark Resort Travel and Amusement Corp manages casino staff separately, according to Joseph Manalili, the casino’s internal security supervisor.
Mr Manalili told Rappler that casino employees’ salary delays began in 2023, and they have since sought aid from the Clark Development Corp and the country’s Department of Labor and Employment.
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