Fontana Resort and Country Club, situated within the Clark Freeport Zone, has been ordered to cease its operations indefinitely
Clark Freeport Zone's Fontana Resort and Country Club has been ordered to cease operations indefinitely, the Clark Development Corporation (CDC) announced late night of January 7.
CDC issued a Cease-and-Desist Order (CDO) on January 6, 2025, against Fontana Development Corporation (FDC) and Fontana Resort and Country Club, Inc. (FRCCI), citing significant breaches of their contractual obligations. This closure comes amidst controversies surrounding the resort, including recently unpaid wages to hundreds of its workers since November last year.
The order means the immediate halt of all operations within the leased area, including the 52-hectare property managed by Korea Country Club, Inc. (KCCI). This suspension will remain in effect until FDC and FRCCI fully comply with their contractual agreements with the state-owned CDC.
CDC said Fontana consistently failed to meet its financial obligations, commitments in the lease agreement, and safety regulations. These safety regulations include the Fire Code and the National Building Code.
The order arrives on the heels of several controversies that have plagued Fontana in recent years. Notably, the resort has faced allegations of unpaid wages to its workers, leading to labor disputes and protests. These allegations have painted a picture of financial mismanagement and disregard for employee welfare.
Fontana was embroiled in a separate controversy at the height of the COVID-19 pandemic. Reports surfaced that the resort had established a makeshift hospital exclusively for Chinese nationals who had contracted the virus. This revelation sparked public outrage and raised concerns about preferential treatment and potential breaches of quarantine protocols. The incident further damaged the resort's reputation and raised questions about its adherence to national health guidelines.
This shutdown marks a significant development for the Clark Freeport Zone's tourism and leisure sector. The indefinite closure of Fontana Resort, compounded by its history of controversies, will undoubtedly impact local businesses and employment.
The CDC's decisive action, however, underscores the importance of adhering to contractual obligations and prioritizing public safety within the zone. The future of Fontana Resort remains uncertain, pending FDC and FRCCI's response and their ability to rectify not only the contractual violations but also the deep-seated reputational damage stemming from its past controversies.
Read related article: Wage Delays Affect 350 at Fontana Leisure Parks and Casino
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