Clark CDC issues cease and desist against Fontana Development Corporation and Fontana Resort and Country Club

The operation of Fontana Leisure Parks & Casino at the Clark Freeport Zone has been suspended indefinitely.

The Philippines.- The Clark Development Corporation (CDC) has executed a cease-and-desist order (CDO) against Fontana Development Corporation (FDC) and Fontana Resort and Country Club, Inc. (FRCCI), effective immediately, for failing to meet their financial and contractual obligations to the state-owned firm.

Due to this, operations at the 300-hectare leisure park and casino complex in Pampanga have been suspended indefinitely.

In a Facebook post, the CDS said: “CDC issued the CDO due to the numerous violations committed by FDC, 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.”

According to the news outlet Rappler, Fontana had already received a similar order from the CDC in December 2016 due to a pending investigation by the Department of Justice (DOJ) into alleged unlicensed gaming operations and the employment of illegal foreigners. However, the CDC notified Fontana that it could resume operations of all its facilities in the same month.

Another cease and desist order was issued on May 20, 2020, for the alleged illegal operation of a medical facility centre for Chinese patients in one of the Fontana villas. The suspension was then lifted less than two weeks later. 

The closure of Fontana reportedly affects over 500 employees, including 346 from the resort and 229 from the casino.

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