The Philippine Amusement and Gaming Corp stands by a decision to pay out P234 million ($4.6 million) in advance rental for a casino under construction at the Army Navy Club in Manila, local media reports.
Pagcor Chair Andrea Domingo stood by the decision made by her predecessor during a House Committee on Good Government and Accountability probe on the Army Navy Club lease contract between PAGCOR and Vanderwood Management Corp.
Domingo said Pagcor did not violate any law in paying the company advance rental for the use of a portion of the property, the reports said. The payment was made as an 18 month advance rental for a building that was to be completed according to Pagcor specifications.
Domingo said the amount paid remains intact and is not spent until Pagcor accepts the building as complete.
Former Pagcor chair Cristino Naguiat signed a 15-year contract with Vanderwood for a fully fitted casino at the club. However, lawmakers have queried a decision to pay rent up front even though the property was not complete.
Domingo said Vanderwood has since returned the amount in pursuant to a Notice of Disallowance from the Commission on Audit.