PAGCOR will investigate Suncity Group over claims the company failed to return some player deposits.
The Philippines.- Andrea Domingo, PAGCOR chairman and CEO, has announced she will set up an investigative committee to look into the casino junket investor Suncity Group Holdings due to allegations that it failed to return clients’ deposits when they requested funds.
There have been claims that Suncity may have invested some of the funds elsewhere without permission. Domingo told The Philippine Daily Inquirer the investigative committee will be headed by Arnold Salvosa, the legal department’s assistant vice president.
Suncity Group answered the allegations through a full-page ad in local media arguing it was committed to returning cash deposits made to the firm. However, Alvin Chau Cheok Wa, CEO of Suncity, said it was difficult to release the entirety of the placements at once due to the company’s financial situation.
In March, the casino junket investor predicted a profit attributable to shareholders of approximately RMB750.4m (US$115.3m) for 2020. The announcement came despite a 67 per cent drop in revenue for the year due to the financial impact of the Covid-19 pandemic.
In June, Suncity launched a voluntary exit scheme for employees. The so-called “Personal Career Reshaping Plan” offered benefits such as extra allowances for employees over 60 years old. The plan included a partial payout of social security contributions, an extension of medical insurance coverage, and career planning support services.
At the time, Chau said: “For the company’s sustainable development, it is necessary to change the strategy, optimize the organizational structure, retain the core business, and respond to changes in the market environment.”