An ANTI-crime group on Sunday urged the Justice department to indict Chinese gaming mogul Jack Lam for violating the Anti-Dummy Law.
The Volunteers Against Crime and Corruption made the call even as the department’s prosecutors are set to resume the preliminary investigation of the complaint filed by the VACC against Lam on April 28.
During the preliminary hearing last week, the VACC filed an affidavit insisting that Lam should be held criminally liable for violating the anti-dummy law.
“It is most respectfully prayed that this Honorable Office find probable cause against the respondent for [violating the Anti-Dummy Law],” says the affidavit signed by Arsenio Evangelista.
He said Lam’s counsel failed to provide documents to support his claim that Fort Ilocandia is 60-percent Filipino owned, despite the assertion of businessman Charlie Ang.
“Mr. Ang’s defense merely constitutes plain denials without substantiation,” the VACC said.
“There [is] no proof that the BVI companies are registered as doing business in the Philippines.”
Last December, the VACC, through its president Dante Jimenez and its legal counsel Ferdinand Topacio, accused Lam and four others of violating the anti-dummy law that prevents more than 60 percent ownership of foreign investors in real estate properties in the country like Fort Ilocandia in Ilocos Norte.
Topacio said the company used “layering” to conceal the truth that Fort Ilocandia was majority owned by Lam.
“Through corporate layering, Fort Ilocandia through its dummy companies and its Directors and Officers are able to exercise, enjoy, use and exploit real property in the Philippines contrary to law,” the VACC said.
The group also sought to “declare the Asset Purchase Agreement entered into by Fort Ilocandia with Grand Ilocandia and WPI [Waterfront Philippines Inc.] to be null and void for being contrary to law.”
Grand Ilocandia is the original operator and owner of Fort Ilocandia Resort and Hotel when it participated in the deal that took place on Sept. 9, 2000.
Through the asset purchase agreement, Fort Ilocandia Holdings was able to acquire from Grand Ilocandia pieces of property and assets including Fort Ilocandia Resort and Hotel.
“There is a violation of the Anti-Dummy Law when a qualified Filipino citizen or national allows a foreign citizen or nonqualified person to enjoy rights, privileges, property or business the exercise of which is limited to Filipino citizens,” the VACC said.
Citing records from the Securities and Exchange Commission, the VACC said the stocks of Fort Ilocandia Holdings was being shared among Ilocandia Holdings Corp., which holds 59 percent of the Filipino shares; Intellectual Group Ltd. which owns 39 percent of the foreign shares; and less than one percent to Lam.
However, the VACC found out that Lam seemed to also have a hold on IGL when it signed a May 6, 2000 memorandum on behalf of IGL over a P150- million loan given to WPI.
The VACC also noted that Ilocandia Holdings has 39 percent foreign ownership through Corpsmart Ltd. and 59-percent Filipino ownership through Sevenseas Holdings.
“The corporate structure of the above corporations, despite being seemingly compliant with Philippine laws, warrants a deeper investigation as to their real foreign equities and those of their subsidiaries and/or affiliates,” the VACC said.