Okada keeps eyes on Philippines project

MANILA, Philippines -- Japanese billionaire Kazuo Okada, accused by Wynn Resorts Ltd. of making improper payments to Philippine gambling regulators, said he will "vigorously" pursue his $2 billion casino project in the country.

"I intend to vigorously continue my
$2 billion investment," in Philippines casino complex, Okada said in a statement read Monday to lawmakers here. "Rest assured that I will be able to prove that all of the accusations are baseless and are lies that have been blown out of proportion."

Las Vegas-based Wynn Resorts has accused Okada of giving more than $110,000 in payments and gifts to Philippines officials, including chief gambling regulator Cristino Naguiat. Universal Entertainment, where Okada is a chairman and owned a 20 percent stake in Wynn Resorts, said in September it would open a casino and hotel in Manila by December 2013.

Wynn forcibly redeemed Universal's stake on Feb. 19 and its Macau unit ousted Okada from its board for his "unacceptable conduct" on Friday. Philippine President Benigno Aquino also ordered a probe into the matter and said a cabinet committee will investigate Naguiat, who allegedly received free hotel accommodations through Okada.

Universal Entertainment is targeting $3.5 billion in sales from the Philippines project in the first year of operations, Okada, 69, said in September.

Okada's project is part of the casino and leisure complex being developed by the state-owned Philippine Amusement & Gaming Corp. known as Entertainment City. Okada is one of four developers that won a license to operate and invest in that complex.

"I am deeply remorseful as to how the controversy managed to besmirch this country's reputation," Okada said, apologizing for pulling the Philippines into a "personal" controversy between him and Steve Wynn, chairman and chief executive of the U.S. casino operator. The statement was read by Masahiro Terada, president of Tiger Resorts, Leisure and Entertainment, the Philippine unit of Universal. Okada had vowed to take legal action against the allegations.

The Philippines plans to review the role of Philippine Amusement & Gaming as part of its investigation into the alleged payments, Aquino's spokesman Edwin Lacierda told reporters Monday. Philippine Amusement is both a casino operator and regulator.

Naguiat last week said he had done "nothing inappropriate" and said the allegations were "outrageous, politically motivated and untrue." Naguiat at a congressional hearing on Monday again denied wrongdoing and called himself the victim of "a boardroom war."