President Aquino’s “Daang Matuwid” has taken another crooked turn with the implication of his friend and classmate, Philippine Amusement and Gaming Corp. chief Cristino Naguiat Jr., in a bribery scandal that came to fore when Wynn Resorts filed a lawsuit accusing its former vice chairman Kazuo Okada of paying off Philippine gaming regulators and cheating the casino giant.
The complaint was filed before the District Court of Nevada on Tuesday. The complaint was based on an investigation over several months by the law firm of former FBI Director Louis Freech, which was commissioned by the Wynn Resorts to interview persons involved in the incident and to review thousands of documents and e-mails. The investigation was conducted to assess the gaming industry in the Philippines.
As early as early last year, Wynn Resorts had decided that it would no longer invest in the Philippines because, it said, corruption in the country’s gaming industry is “deeply ingrained.” At the same time, it expressed doubts that Aquino’s reform agenda would eliminate corruption in the gaming industry. However, despite these conclusions, Okada, according to Wynn Resorts, continued in wooing Pagcor heads with bribes to ensure that its plans to build a casino in Manila would be pursued.
Wynn Resorts has since taken over Okada’s interests in the casino giant and forced the Japanese billionaire out of its board of directors.
During the term of former Pagcor Chairman Efraim Genuino, Okada was given a license to operate casinos and entertainment facilities at the Entertainment City being built by Pagcor at the 71-hectare reclaimed area along Roxas Blvd. But knowing how contracts are reviewed during changes of administration in the Philippines, Okada must have decided to woo the new officials under the Aquino administration despite warnings by his partners in the Wynn Resorts.
Wynn Resorts claimed in its lawsuit that Okada made secret deals with Philippine gaming officials to the detriment of the company. It also claimed that Okada made $110,000 bribe payments to both Naguiat and Genuino, violating the US Foreign Corrupt Practices Act.
Among the perks alleged in the lawsuit as having been given to Naguiat, his wife, his three children, their nanny, and other Pagcor officials during a visit to Macau were free accommodations in the Wynn Resorts luxury suite, $1,673 dinner, $20,000 cash gifts ($5,000 to each member of the Naguiat family), $1,878 Chanel bag (which Naguiat returned because, according to the investigation, Mrs. Naguiat didn’t like it).
It may be worth mentioning that the luxury suite was one of the most expensive in Macau, measuring 700 square meters with amenities that include three master bedrooms, a private casino and a beauty salon, reportedly costing $6,000 a night. The family stayed in the suite for five nights. Shades of Mike Arroyo staying in a $20,000 a night luxury villa courtesy of MGM Resorts and Casino in Las Vegas during one of Manny Pacquiao’s fights.
Naguiat, who said he wouldn’t resign over the use of one “small room,” defended his free stay at the Wynn Resort suite, claiming that it was “industry practice” for casino operators to be accommodated and provided with luxurious hotel amenities when they are in another casino hotel. But Naguiat conveniently overlooked the fact that he was not just a casino operator but also a gaming regulator and a public official who makes decisions on casinos operating in the Philippines.
Ever loyal to friends and classmates, Aquino immediately came to the defense of his buddy and said “There is a presumption of innocence unless proven guilty, so in this particular instance, we should afford him also the benefit of hearing him out before we make any judgment.”
Unfortunately, Aquino could not say the same of Chief Justice Renato Corona in the latter’s impeachment trial, having pronounced him guilty even before the impeachment complaint was filed by the House of Representatives and reiterating Corona’s guilt in various fora and interviews even while the Senate has yet to conclude its trial.
Aquino was joined by Presidential spokesperson Edwin Lacierda in defending Naguiat, saying that the latter committed no ethical violations. “There is no ethical violation because he was there as a casino operator and not as a casino regulator. Again he couldn’t go there as a casino regulator because the ‘provisional agreement’ has already been signed in 2008 and he was there talking to several casino operators,” he said.
After clearing Naguiat, Aquino then ordered Executive Secretary Paquito Ochoa to launch an investigation of the allegations. Again, the action sounds familiar – clear and then investigate – except that in the case of Corona – declare guilty and then file an impeachment complaint.
And then comes the Aquino rah-rah boys in the House of Representatives, the same guys who used to defend Gloria Macapagal Arroyo at every turn. On a motion of Eastern Samar Rep. Ben Evardonne — yes the same former governor who used to be one of the key officials of Arroyo’s LDP and prime movers of Arroyo’s cha-cha express – and Cagayan de Oro Rep. Rufus Rodriguez, the House committee on games and amusement, headed by Manila Rep. Amado Bagatsing, another former Arroyo ally, approved a move to bar Wynn Resort CEO Steve Wynn from doing business in the Philippines, incognizant of the fact that it was Wynn himself who was stopping Okada from pursuing a casino project in the country because of its corruption.
Evardonne siad that Wynn is embarrassing Filipinos by claiming that corruption is rampant in the country. Does he really believe that corruption is not rampant in the Philippines? Instead of investigating the allegations, Evardonne has chosen to play the patriotic card and accuse the accuser of malice. Some things just never change.
Aquino was loudly criticized for his immediate defense of Naguiat, which recalls the same pronouncement of innocence he gave to presidential adviser Ronald Llamas, another member of the KKK, Inc. (kaibigan, kaklase, kabarilan) when the latter was videographed buying pirated tapes in a mall.
“Look at both sides before making a judgment. Double standard e. Pag kaibigan, acquitted, pag kaaway, guilty,” economist and columnist Solita Monsod said. House deputy minority leader Mitos Magsaysay said: “KKK na naman iyan kaya kinakampihan, Laging naaabswelto sila e.”
The Naguiat bribery scandal is a big dent to Aquino’s self-proclaimed move to curb corruption in the government. It is an affront to his “daang matuwid” and “no to wang-wang” proclamations.
The Wynn Resorts lawsuit was carried by several major newspapers in the United States and carried worldwide by the Bloomberg news agency, thus casting doubt internationally on Aquino’s reform agenda.
Naguiat’s claim that the perks and gifts that he received from a casino operator was “industry practice” and that he, therefore, is entitled to them is in direct contrast to Aquino’s boast that under his administration, there will be no more “wang-wang” mentality or a sense of entitlement among government officials. He vowed to punish those who will continue to insist on this entitlement, and yet he was the first to come to the defense of his two friends – Naguiat and Llamas – who felt they are entitled to perks and privileges, and a few violations of the law.
So where is Aquino’s “Daang Matuwid” really leading us? Going around in circles, I guess.