Singapore clarifies its stance on Genting

The Associated Press and other media reported Monday that Minister for Trade and Industry Lim Hng Kiang had said Singapore was no longer concerned about Genting’s business integrity after company took measures to clear its links to a Macau tycoon.

"Resorts World at Sentosa understands our need to maintain these probity checks and there is no issue now," Lim said Monday at the groundbreaking ceremony for Genting’s us$ 3.4 billion casino project casino resort.

But a ministry spokeswoman on Tuesday said Lim meant that Genting understood its responsibility with regard to the suitability checks, which are necessary before winning a casino license, not that the company had been cleared to operate the casino. The spokeswoman was not named in keeping with ministry policy.

It was unclear whether Genting has started its probity checks. Genting officials could not be reached for comment. Singapore warned the firm in February that the company and its associates would have to prove they could run a clean gambling venue.

The government was apparently concerned over Genting’s Macau business tie-up with casino baron Stanley Ho, one of the most powerful men in Hong Kong and Macau, a gambling enclave that has a reputation as an organized crime stronghold. In response, Genting sold its share of the Macau investment to its partner, Star Cruises, and then bought Star Cruises’ stake in the Singapore resort.

The purchase from its sister company would give Genting full control over the casino project on Singapore’s Sentosa island and "potentially help to simplify (Genting’s) application process for a casino license," the company said at the time.

Genting International’s chairman, Lim Kok Thay, told reporters Monday that the company had concluded the disposal of its Macau investment and is awaiting shareholder approval on its purchase of the 25 percent stake in the Singapore casino from Star Cruises.

Singapore legalized casino gaming in 2005 and said it would allow two casino resorts to be built. The first was awarded to Las Vegas Sands Corp., which plans to open its us$ 3.6 billion Marina Bay Sands resort by July 2009.