On Monday, Clark Development Corporation (CDC) issued a cease-and-desist order against Fontana Development Corporation and Fontana Resort and Country Club Inc., effectively halting the operations of Fontana Leisure Parks & Casino within the Clark Freeport Zone in the Philippines.
According to a statement released by CDC on Tuesday, the directive takes immediate effect due to the companies’ failure to fulfill their financial and contractual obligations to the government-owned agency.
The order mandates that both companies “immediately cease all activities” across their leased premises, including the 52-hectare property currently under the management of Korea Country Club Inc., until they address their outstanding contractual responsibilities.
CDC further highlighted that Fontana Development Corporation had committed multiple infractions, such as defaulting on financial commitments, breaching the terms of their lease agreement, and failing to comply with safety regulations outlined in the Fire Code and National Building Code.
The agency warned that non-compliance with the order could prompt further enforcement measures, including the termination of the lease contract.
The closure of Fontana Leisure Parks & Casino impacts more than 500 workers, with 229 of them employed at the casino, according to a report by Rappler.
Joseph Manalili, an internal security supervisor at the casino, told the outlet that casino employees are managed separately by Clark Resort Travel and Amusement Corporation. He also disclosed that salary delays for casino staff began in 2023, prompting them to seek assistance from CDC and the Department of Labor and Employment.