Saturday, February 8, 2025
HomeNewsMacauCape Verde gov't accuses Macau Legend of "flagrant and repeated" breach of contractual obligations

Cape Verde gov’t accuses Macau Legend of “flagrant and repeated” breach of contractual obligations

The Cape Verde government stated that Macau Legend Development (MLD) violated its obligations “in a flagrant and repeated manner” regarding a tourism and gaming investment in Praia, justifying its termination and reversal.

“Considering that MLD has flagrantly and repeatedly violated its obligations (…), the State of Cape Verde has no option but to proceed with the termination” of the contracts, reads a decision from the Council of Ministers regarding the 250 million euro ($264.7 million) investment, announced 10 years ago but never completed, as reported by news agency Lusa.

“The State of Cape Verde provided MLD [in Cape Verde] with every opportunity to resume construction or negotiate the sale of shares or the transfer of its contractual position to a potential interested party in continuing the project,” but no alternatives were presented, it added.

Macau Legend Development, Cape Verde

According to the government, “the contractual violations perpetrated by MLD occurred at various levels,” granting the State of Cape Verde, as the “injured party,” the right “to terminate the Establishment Convention, as well as the contracts derived from it,” details the text signed by Prime Minister Ulisses Correia e Silva.

The resolution from the Council of Ministers was published in the Official Bulletin, along with the decree from the Ministry of Finance and Business Promotion that determines the reversal of the assets granted and constructed.

The government stated that MLD “also violated” the legal framework for gaming operations, “by transferring, without the authorization of the Government of Cape Verde, ownership of more than 20 percent of the share capital.”

Cape Verde Project, Macau Legend

The government further cites “convictions by the courts of the Macau Special Administrative Region against shareholders, directors, and other individuals with rights and responsibilities in MLD,” as well as “the economic and financial situation of the parent company.”

On August 28th of this year, Cape Verde communicated its intention to terminate all contracts with the Macau company, which, on September 16th, justified itself (in a preliminary hearing) by citing the COVID-19 pandemic to deny “culpable non-compliance with obligations.”

“However, this reasoning cannot proceed because COVID-19 ended in 2021, and to this day, the construction works remain halted and without a scheduled date for resumption,” added the resolution from the Cape Verde Council of Ministers.

In 2015, David Chow signed an agreement with the Cape Verde government to build the development on the islet of Santa Maria in Gamboa, with the project’s groundbreaking taking place in February 2016.

Macau Legend Development, Cape Verde project

The project involved the largest tourism development in Cape Verde at the time, with a total expected investment of 250 million euros – approximately 15 percent of Cape Verde’s Gross Domestic Product (GDP).

Macau Legend received a 25-year license from the Cape Verde government, 15 of which were for exclusive operation on the island of Santiago. This gaming concession cost CV Entertainment Co., a subsidiary of Macau Legend, approximately 1.2 million euros.

Macau Legend also received a special license to exclusively operate online gambling throughout the country and the sports betting market for ten years.

The project’s construction faced opposition from various social groups, particularly environmentalists, including a group of 12 scientists and paleontologists coordinated by the Gulbenkian Institute of Science in Portugal.

It was also contested by members of the Cape Verde “Korrenti di Ativista” movement who camped on the islet of Santa Maria. The former chairman of the Cape Verde Architects’ Association (OAC), Cipriano Fernandes, even requested the intervention of the Attorney General’s Office (PGR) to suspend the project.

In recent years, there have only been guards at the gates of the site, an area of about 160,000 square meters, which includes the islet of Santa Maria, partially excavated, and a short asphalted bridge connecting it to an approximately eight-story building, empty and fenced off with barriers.

About a year ago, in an interview with Hong Kong TVB, MLD President and CEO Li Chu Kwan stated that the group intended to close projects in Cape Verde and Cambodia by 2025.

At the time, Cape Verde’s Prime Minister stated that it was necessary to revert the concession before deciding “the fate of this investment, which cannot remain as it is,” he concluded.

Nelson Moura
Nelson Mourahttp://agbrief.com
Editor and reporter with 10 years of experience in Greater China, namely Taiwan and Macau, in printed and online media, with a focus on finance, gaming, politics, crime, business and social issues.

RELATED ARTICLES

FOLLOW AGB

daily newsletter