Opinion | Macao casino junket scandal sinks magnate

By Augustus K. Yeung

Introduction

Hong Kong and Macao are not without serious problems: Hong Kong's share of the social problem was political, which manifested in the 2019 "protests" that were well-orchestrated by the collusion of the Pan-democrats and their foreign friends; and Macao's most recent problem is an allegedly well-organized crime of financial nature, that has severely hurt the Chinese mainlanders' pockets and breaking the nation's laws.

"Chinese prosecutors are targeting online casinos after a growing number of [Macao-based] operators started using internet platforms to get around the country's laws against gambling," reports Jack Lau for the Post.

Miao Shengming of the Supreme People's Procuratorate said recently illegal had evolved. "Criminals are using internet technology, such as software and platforms, to connect gamblers, casinos and their proxies," he said. ("Beijing targets online casinos as it steps up war on illegal gambling." South China Morning Post, November 30, 2021.)

Five days after Mr. Alvin Chau (a Macao citizen), the chief executive officer of Suncity Group was arrested by Macao's judicial police, which was responding to an arrest warrant from mainland China, Suncity Group is closing all its VIP gaming rooms in Macao casinos and no longer paying some staff, said local people familiar with the matter, Bloomberg reported on November 30.

Suncity Staff Can't Access Company System

The biggest junket operator in Macao will close its rooms from December 1 and stop paying some employees from the same date, according to Bloomberg.

Some employees were also told that their salaries for November may not be paid on time, said the people, adding that it wasn't clear if the closures are temporary or permanent. The salary suspensions affect at least one third of Suncity's workers in Macao.

According to Bloomberg, Suncity staff cannot currently access company systems such as email and chatroom due to the police investigation, two of the people said. The group's website has also gone offline.

Alvin Chau was Detained on November 26

Since Mr. Chau was detained over the weekend, the company's Hong Kong-listed arm Suncity Group Holdings Lt. which doesn't include its junket operation, has plunged over 50%, while a Bloomberg gauge of casino operators has dropped 10.4%.

News of Suncity's VIP room closures and staff furlough was first reported by local media outlets Hong Kong Economic Times and HK01 yesterday.

On Monday, Suncity said in a regulatory filing that Mr. Alvin Chau, who was detained on November 26 and is current in pre-trial detention, intends to resign as chairman and executive director.

The Judiciary Police said on Sunday that Mr. Chau confessed to establishing overseas gambling platforms and carrying out illegal betting activities. As part of their regular activities, junkets service high-rollers and extend credit to them.

"We are heading for a junket-free scenario for Macao casinos," said Angela Hanlee, an analyst with Bloomberg Intelligence. Macao gaming companies may experience severe shrinkage in the VIP gaming business as authorities tighten supervision over junkets in mainland China, she wrote in a November 26 note. ("SUNCITY TO SUSPEND VIP OPERATIONS TODAY: REPORT." Macao Daily Times, December 1, 2021.)

Shanghai to Help Diversify Macao

Meanwhile, the city of Shanghai is willing to play its part in responding to the central government's call to diversify Macao's economy, through the development of projects in Hengqin intensive cooperation zone, rather than to rely squarely on the present gaming industry. Thanks to Beijing.

"Over the recent years, Macao has made great achievements in the application of the 'one country, two systems' policy, and this September the State Council has rolled out the plan for the Macao and Guangdong intensive cooperation [zone] in Hengqin island. Shanghai is very much willing to take part in this opportunity." Zhou Minhao, the Chairman of the Council for the Promotion of International Trade of Shanghai.

He added that the participation of Shanghai as "Partner City" of this year's event represents the first real project under the cooperation agreement between the two cities.

Zhou recalled that, in June this year, when Macao Chief Executive Ho Iat Seng toured Shanghai, he met with the city's Mayor, Gong Zheng. The two agreed at the time on establishing cooperation in several fields, especially in the sector of meetings, incentives, conferences, and exhibitions (MICE), a traditional strength of Macao.

The purpose of this "cooperation" is to "leverage synergies" when organizing an event of this size in Macao and to "diversify Macao" to the outside world apart from its existing international image of Casino hub, while border restrictions still do not allow entry of any foreigners. (This year's edition takes place between December 10 and 12.)

Conclusion

Superficially, the news in Hong Kong and Macao are locally based, but the significance goes far beyond political crimes and financial rule-breakings. In both cases, the central government has stepped in, not just to solve the "local" problems, but also to offer substantial support to the two Special Administrative Regions.

As Hong Kong's problem was complicated by foreign interference, it took a longer time to observe from a distance, formulate solutions and enact security laws to solve the severe problem, restoring law and order to a "war-torn" Hong Kong.

Macao's problem is non-political in nature, which was strictly financial and economical, not involving foreigners, showing no signs of American meddling as was in the case of Hong Kong.

However, the case of Hong Kong is now clear and strictly under control, the situation in Macao is still undergoing local judicial proceedings. This complicated legal case might have yet to be finalized by the mainland authorities as it not just covers financial crimes in mainland proper but also in some Southeast Asian countries such as the Philippines.

The downside of these problems is obvious. However, the bounty of Beijing has yet to be unraveled: After the return of sovereignty to China, Beijing has shown patience and exerted power of fortitude to help solve the problems that are facing the two Special Administrative Regions.

The theoretical implications of these two cases should be clear to Taiwan, which is still showing signs of tensions and anxiety. The best political advice, the Tsai Ing-wen administration can get is not to be swayed by the American "friends" and their allies, which are ultimately unreliable. Just look at what happened to Afghanistan, which was abandoned just as what had happened to Vietnam in the 1970s.

To be politically wise, Tsai should immediately get on the bargaining table with her mainland counterpart, and sincerely renounce "Taiwan independence", whether the party's is genuinely thinking about these two sensitive words or that the party is using the sensitive concept to agitate the central government and appeal to the Taiwan voters.

The road to "independence" is clearly going nowhere. Taiwan's brighter future realistically lies in building solid ties with mainland China, which can be and is capable of being as generous or much more so than in the cases of Hong Kong and Macao Special Administrative Regions.

Stop playing politics. Start upgrading the livelihood of the Taiwanese.

Sitting down on the negotiations table, and Taiwan obtains eternal rewards might prove to be the best bets the island can ever wage; the tensions in the Taiwan Straits will immediately disappear.

Forget any other options. Forget politics. Forget the sweet talks of foreign "friends".

Give everlasting peace a chance!

The author is a freelance writer; formerly Adjunct Lecturer, taught MBA Philosophy of Management, and International Strategy, and online columnist of 3-D Corner (HKU SPACE), University of Hong Kong.

 

The views do not necessarily reflect those of DotDotNews.

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