VIP Club at Rajah Park: Tom faces suit for closing club

CEBU - The firm supplying the slot machines of the VIP Club at Rajah Park Hotel has filed a P2 million damage suit against Cebu City Mayor Tomas Osmeña, who ordered the place closed.

Also included in the civil suit is City Attorney Rodolfo Golez.    Osmeña ordered the closure of the establishment, which operates slots machines, closed last September 19.

Waz Lian Management Philippines Inc (WLMPI) and MYALL Group Limited has also asked the court to direct the maintenance of the status quo and to lift the closure order including the reinstatement of all business privileges and the continuation of the VIP Club.

WLMPI and MYALL also asked for the issuance of a writ of Mandatory Injunction and to declare null and void the findings of the joint inspection made by the Cebu City Government and the show cause notice that was issued including the closure order.

Osmeña ordered the VIP Club closed for its failure to secure the necessary certificate to operate and other related permits from PAGCOR and for failing to secure a consent permit from the Cebu City Government.

     Other grounds that were considered in the closure order were the failure of the establishment to secure a sanitary permit and the lack of a fire safety inspection certificate.

The said order was based on the findings of the joint inspection last August 14 that resulted to the issuance of the show cause order which directed the company to submit a valid unexpired copy of the certificate to operate and other related permits from Philippine Amusement and Gaming Corporation.

According the closure order, pursuant to the passage of RA 9487, Casino Filipino also failed to secure a new consent from the City of Cebu for the operation of its business. 

WLMPI asked P1 million for moral damages, P500,000 in exemplary damages, P200,000 as attorney’s fees including P3,000 for every court appearance. It also asked for not less than P300,000 in litigation expenses plus the cost of the suit.

WLMPI in the complaint asserted that the closure order is null because the alleged absence of a valid certificate to operate or license issued by PAGCOR does not present a valid ground to close the VIP Club operations because the application for a permit is not required because it is operated by PAGCOR itself.

WLMPI cited that PD 771 exempts PAGCOR from securing a Mayors Permit. The decree removes chartered cities and other local government authority to issue permits and licenses.

According to WLMPI, PAGCOR operates the said VIP Club at Rajah Park Hotel and that they are just proponents to recent agreement that they have signed with PAGCOR.

In the agreement, WLMPI would put up all facilities for the VIP Club of PAGCOR including modern technology slot machines and proprietary system of linking and networking of slot machines, technical training, promotional expenses, salaries of PAGCOR employees and other operating expenses necessary in the operation of the VIP Club.

WLMPI is engaged in the business of operating and trading slot machine arcades. — Jasmin R. Uy/NLQ (THE FREEMAN)