Read this in The Manila Times digital edition.
CHARGES of two counts of qualified theft were filed by lawyers of Japanese gaming tycoon Kazuo Okada before the Department of Justice against former Okada Manila executives.
The case stemmed from the supposed execution of the service agreement with Master Fogger, a cleaner and pest control company, allegedly authorized by former board members of Tiger Resort Leisure and Entertainment Inc. (TRLEI), operator of Okada Manila, led by Hajime Tokuda and Michiake Satate.
Also charged were Kenji Sugiyama, Toji Takeuchi, Celso del Rosario, James Gordon Lorenzana, along with a certain Jorge Miano who purportedly represented himself as president of Master Fogger.
Based on the report, two check payments were made by Tokuda and his group.
The first was on Feb. 10, 2022 amounting to P42,242,400 and the second payment was made on Feb. 25, 2022 amounting to P98,565,600 for a total of P140.8 million in a span of fifteen days.
"The amounts were taken with intent to gain, and without the valid consent of (TRLEI) through the use of a simulated service agreement with Master Fogger," the complainant said.
"Also suspiciously glaring is the fact that the two check payments supposedly meant for Master Fogger were received by a certain Roberto Jaime Gepilano of Argo Global Lending, a company of which Michiake Satate just so happens to be its management advisor," the Kazuo-led board added
The alleged financial fraud was uncovered during an internal audit investigation undertaken by the Kazuo-led board of TRLEI when they assumed office last June.
"Grave violations of administrative and governance compliance policies were discovered in the execution of the service agreement with Master Fogger. The said service agreement was spared from TRLEI's stringent vendor accreditation process as Hajime Tokuda and Michiake Satate personally intervened and ensured the contract's approval," the Kazuo-led board said in a statement sent to The Manila Times.
The Kazuo-led internal audit alleged that the Master Fogger service agreement contract lacked details to "enforce delivery, accountability, and monitor compliance with performance standards."
It was further alleged that only Tokuda and Satate had direct access to Master Fogger throughout the negotiation process.
Kazuo's legal counsel pointed out that the consideration or contract price of more than P140 million was grossly disproportionate to the service that was supposed to be rendered.
"The per square meter cost of Master Fogger's pest control service is more expensive by P80.10 compared to existing accredited TRLEI vendor i.e. Pest Science," the complainant argued.
At the same time, the Kazuo-led board deemed that the Master Fogger deal was "redundant and wasteful" as there were already two existing pest control service providers for Okada Manila. The current Okada Manila board noted that at P8,169,929 per year, the two existing contracts are comparatively cheaper.
The Kazuo-led group also noted that the full P140.8 million was paid for in advance less than a month after the contract approval. There was no bond requirement for 100 percent advance payment of the total contract cost prior to service delivery.
It added that the approval of Master Fogger's service agreement was only done via e-mail and is therefore void because there was no actual meeting of the board or a board resolution supporting the approval, nor any prior notice sent.
Kazuo Okada, the reinstalled Okada Manila chairman and CEO, said that investigations will continue to ensure the financial viability of the company.
The former TRLEI executives have yet to issue statements to address the accusations made by the Kazuo-led group.