The Cape Verdean government has accused casino operator Macau Legend Development (MLD) of “flagrantly and repeatedly” breaching its obligations in a tourism and gaming project in the country’s capital Praia. This, it said, justified the termination and reversal of contracts, announced on Monday.
“Given that MLD flagrantly and repeatedly violated its obligations (…), the State of Cape Verde has no choice but to proceed with the termination of the contracts,” stated the Council of Ministers in a decision regarding the €250 million investment, announced a decade ago but never completed.
“The State of Cape Verde gave MLD companies [in Cape Verde] every opportunity to resume construction works, negotiate the sale of shares, or transfer their contractual position to a potential interested party to continue the project,” the statement added. However, no alternatives were presented.
The government stated that “contractual violations committed by MLD occurred on several levels,” giving Cape Verde, as the “aggrieved party,” the right “to terminate the Establishment Convention and the contracts derived from it,” according to the document signed by Prime Minister Ulisses Correia e Silva.
The resolution by the Council of Ministers was published in the Official Gazette, alongside an ordinance from the Ministry of Finance and Business Promotion, which ordered the reversal of ceded and constructed assets.
The government further alleged that MLD violated the legal framework governing gaming operations by “transferring more than 20 per cent of its share capital without authorisation from the Cape Verdean government.”
Additionally, it cited “convictions by the courts of the Macau Special Administrative Region involving shareholders, directors, and other individuals with rights and responsibilities in MLD,” as well as the “financial and economic situation of the parent company.”
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