His explanation to the media that he returned a Chanel bag meant for his wife and that it was an industry practice to provide free accommodations to visiting gaming executives appears not to be enough.
President Benigno Aquino III has asked Cristino Naguiat Jr., chair of state-owned Philippine Amusement and Gaming Corp. (Pagcor), to explain in writing his entanglement in a bribery case in the United States against a Japanese businessman, Malaca帽ang on Thursday said.
Naguiat and former Pagcor chairman Ephraim Genuino were identified in a lawsuit filed by an American gambling firm in a district court in Las Vegas as the two Pagcor executives for whom Kazuo Okada had spent $110,000 to curry favor with them.
Asked if Naguiat would be issued a formal memorandum the way Presidential Adviser on Political Affairs Ronald Llamas had been asked to explain his purchase of P2,000 worth of pirated DVDs, presidential spokesperson Edwin Lacierda said, 鈥(The President) has asked for an extended briefer on the matter and we will take it from there.鈥
Lacierda said at a news briefing in Malaca帽ang that 鈥(Mr. Aquino) had not received the briefer yet but had spoken to Chairman Naguiat.鈥
Classmate
A close friend of Mr. Aquino, Naguiat is one of the President鈥檚 classmates at the Ateneo de Manila University, whom he had appointed to posts under his administration.
Wynn Resorts chief executive Steve Wynn accused Okada of violating the US Foreign Corrupt Practices Act through alleged payoffs made to the two Philippine gaming officials.
Okada, a director at Wynn Resorts, was alleged to have gone behind the back of the company to develop a business for his own Universal Entertainment Group in the Philippines.
Casino鈥檚 best butler
In Naguiat鈥檚 case, the lawsuit said that he, his wife, three children and nanny received free accommodations at a luxury suite in Wynn Macau, that they were assigned the casino鈥檚 best butler and that he requested and received a $1,878 Chanel designer bag for his wife.
Genuino鈥檚 trip
The suit also claimed that Okada spent $50,000 on Naguiat鈥檚 visit in September 2010, including $20,000 in cash given to the Filipino delegation for shopping and gaming.
Okada told Wynn investigators that he had paid for Genuino鈥檚 trip to Beijing for the 2008 Olympics.
Naguait on Wednesday said that he did not receive the Chanel bag for his wife. The Pagcor chairman said he had casually told one of Okada鈥檚 aides that he wanted to surprise his wife with a Chanel bag and was surprised to find one delivered to his room later.
鈥淢aybe the staffer was just trying to impress his guests. In any case, I returned the bag immediately,鈥 Naguiat said.
Nothing irregular
Even before Naguiat could submit his explanation, Lacierda said there was nothing irregular with the Pagcor chairman and his family鈥檚 free accommodations at a luxury suite in Macau.
鈥淭he investigation conducted by the private investigator showed some alleged anomalies but he failed to mention that Mr. Bong Naguiat was there not as a casino regulator but as a casino operator,鈥 Lacierda said.
Lacierda said Naguiat went to Wynn Macau for a gaming convention of casino operators 鈥渁nd, if you know how it goes, casino operators are provided accommodations elsewhere.鈥
鈥淚f they come here as casino operators, the casino operators are also given the same accommodations. There is no ethical violation because he was there as a casino operator and not as casino regulator,鈥 Lacierda said.
Licenses
Okada鈥檚 Universal Entertainment was one of the four groups awarded licenses in 2008 during the incumbency of Genuino to build a hotel resort complex in the 12-hectare Pagcor Entertainment City on Manila Bay. Universal Entertainment broke ground on January 26 for its Manila Bay Resorts casino.
鈥淎gain, (Naguiat) couldn鈥檛 go there as a casino regulator because the provisional agreement was already signed in 2008 and he was there talking to several casino operators,鈥 said the presidential spokesperson.
Lacierda noted that Pagcor was operating several casinos 鈥渟o he (Naguiat) was there as a casino operator.鈥
鈥淭he impression being laid down just because he was given accommodations is on the basis that he violated federal laws. But we have not seen any suit against Mr. Naguiat,鈥 he said.
Collateral damage
Lacierda said the Philippines and Pagcor had become 鈥渃ollateral damage鈥 as a result of the corporate battle between Wynn and Okada.
鈥淭his is a huge intracorporate controversy between Mr. Steve Wynn and Mr.聽 Okada. They are really trying to wrest control of the company,鈥 Lacierda said.
Lacierda said this was the reason Wynn hired a private investigator, no less than a聽 former director of the Federal Bureau of Investigation, to conduct a probe.
鈥淥n the other hand, Mr. Okada also filed a case over 1 billion Hong Kong dollars against Steve Wynn,鈥 Lacierda said.
Okada, Wynn Resorts鈥檚 largest shareholder, sued the company in January for denying him information about a $135-million donation to the University of Macau. He called the donation inappropriate.
On Sunday, Wynn鈥檚 board voted to force out Okada and moved to redeem his 20-percent stake in the company at a huge discount and payable in 10 years.
鈥淪o obviously this is a fight between two gaming titans. The Philippines and Pagcor have become collateral damage,鈥 Lacierda added.
Family accommodations
As for the family accommodations, Lacierda said Naguiat had paid for their air fare going to Macau.
鈥淐hairman Naguiat wants to see his children, too. So what鈥檚 wrong with paying for the transportation expenses of the wife and the family? It was paid for by Mr. Naguiat,鈥 he said.
Told that the free suite given to Naguiat as a casino operator of the Philippine government was also enjoyed by members of his family, Lacierda said, 鈥淵es they stayed in the same room. They are a family.鈥
鈥淐an you imagine if the wife and children stayed in another room of their own? They just stayed in the same room where Chairman Naguiat was,鈥 Lacierda said.