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Clark firm faces closure for failure to pay overdue lease

Wednesday, January 28, 2009 [ ]

CLARK FREEPORT: The Clark Development Corp. (CDC) may shut down the operations of a multimillion-tourism project here if the company fails to pay P28-million overdue lease.

The local daily Punto! Central Luzon reported that CDC would be forced to take over the operations of YI Leisure (Clark) Inc. (YILCI) if it fails to settle lease payments worth P28, 828,398.53.

The news report said YILCI President Denny On Yat Wang signed a lease agreement on December 6, 2000 with then CDC President Rogelio Singson for the establishment of tourism-related projects here.

The said agreement requires a minimum guaranteed lease of P44 million from the company within the first seven years of operations. However, YILCI was able to pay only P15, 171,601.47 leaving a balance of more than P28 million.

The news report said YILCI also failed to comply with several of its contract obligations with the CDC, such as payment of a surety bond amounting to P1, 247,400 which expired on September 12, 2007; failure to comply with its construction commitment which includes a partially completed 12-hectare property along the Clearwater Country Club; and the failure of development/construction along a 3-hectare area along the Centennial Road.

YILCI reportedly failed to produce its committed employment of 200 workers during the construction phase of its projects and its committed 100 regular employees within its first year of operations. Documents show that there were only 65 actual employees working as of September 30, 2008.

The company also committed an investment of P20 million within its first year of operations and another P400 million on the sixth year but reportedly only had Clearwater Country Club in its report, which reflected an actual investment of P124, 325,525.00 in 2004.

Also, the news article said that YILCI did not submit any investment reports for the annual fiscal semesters of 2005, 2006 and 2007.

Likewise, the said delinquent compay failed to submit its building insurance for its assigned companies, Clearwater Country Club, YI Place, Gastro Pub Inc. and the YI Wine Club, as well as the renewal of its temporary permit to operate that has expired on November 17, 2003.

Calls made to Wang’s cellphone remained unanswered as of press time.-- Mark Louie P. Roxas


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