CLARK FREEPORT, Philippines – The Clark Development Corporation (CDC), on Tuesday, January 21, said it was not seeking new owners for Fontana Leisure Parks and Casino, despite issuing earlier a cease-and-desist order (CDO) to its current propietor.

The current owner and operator of the 300-hectare leisure park and casino complex, the Fontana Development Corporation (FDC) and Fontana Resort and Country Club Inc. (FRCCI), are facing over P200 million in arrears in their obligations to the CDC.

Fontana’s dire situation following the issuance of the CDO two weeks earlier by the CDC is causing growing concern among its club members who were worried over the future of the leisure facility.

Fontana has around 2,000 active club members, according to a former Fontana executive. 

The CDO was prompted by the failure of FDC and FRCCI to meet contractual obligations, including non-payment of dues, non-compliance with necessary regulatory permits, and violations of the national building code.

According to Allan Resma, safety officer and chairperson of the family welfare program for Fontana employees, FDC and FRCCI is owned by Chinese gambling tycoon Jack Lam.

Noelle Mina Meneses, CDC vice president for business development and enhancement group, told Rappler on Tuesday, that while the order served as a warning, it was not looking for new owners for Fontana.

Meneses said CDC is focused on ensuring that FDC and FRCCI will comply with their obligations. If the companies continue to fall short, termination proceedings under the consolidated lease agreement may follow. She added that the order will remain in effect until the companies fulfill their financial and contractual responsibilities.

However, if FDC and FRCCI fail to fulfill their financial obligations, the development plan for the area will depend on a future or new investor, aligned with CDC’s broader mandate to promote sustainable development and investment, Meneses added.

“Unlike in the take over of BCDA (Bases Conversion and Development Authority) over the Camp John Hay in Baguio, CDC has merely issued a cease and desist order. Such CDO is a preliminary step to compel FDC and FRCCI full compliance with its financial and contractual obligations with the CDC,” Meneses said.

“If, despite the issuance of a CDO, FDC and FRCCI shall not fulfill their financial and contractual obligations, CDC shall, in accordance with the provisions of the consolidated lease agreement, initiate termination proceedings,” she added.

According to CDC, Fontana’s arrears have ballooned to over P203 million as of December 2024. This figure includes unpaid minimum guaranteed lease, required revenue shares from subleases, and accumulated penalties and interest due to non-compliance.

Rappler tried to contact the Fontana management but was denied entry to the complex.

John Cruz (not his real name), a long-time club member since 1997, is among those who felt uncertain about the club’s future. He said that Fontana management has not provided any updates on the situation, and several members who tried to reach out were ignored. 

Cruz added that many members, who have consistently paid their dues over the years and are up-to-date as of December 2024, have called on the CDC to intervene and restore normalcy to the club.

“I’ve been paying my dues regularly at P3,000 a month, including food and beverage allowance, and villa use. I love the club. it’s part of my family’s memories,” Joey told Rappler on January 7. 

“It’s heartbreaking to see it in this state. I feel sorry for all the employees especially after all the controversies. We’ve known them over the years. I just hope something can be done.”

Despite the uncertainty, the CDC reassured members that long-term leaseholders who were properly endorsed by FDC and FRCCI would continue to have access to their villas. The CDC said it has allowed the access of leaseholders even with the CDO in place.

Meanwhile, Fontana employees and casino workers have filed a case against the resort’s management for unfair labor practices. A hearing is scheduled for February with the National Labor Relations Commission. The employees have yet to receive their salaries for November 30, December 15 and 30, and January 15 pay cuts, as well as their 13th-month pay.

Pampanga Chamber of Commerce chairperson Rene Romero, in a separate interview on January 14, said they were unaware that Fontana was still operational under its current circumstances. Romero added that they would conduct further research and gather relevant facts regarding the situation, particularly the condition of Fontana’s employees and the perspectives of its stakeholders, including active club members.

In response to the idea of a Filipino business group taking over Fontana, Romero said “it is certainly an idea worth considering, especially if it ensures better management, provides fair treatment to employees, and promotes the welfare of the local economy.”  – Rappler.com