The legal confrontation intensifies following a statement from Macau Legend Development (MLD) about its plans to “vigorously contest” the claims of the Cape Verde Government.
The statement followed accusations from the Cape Verde Government, which asserts that Macau Legend Development failed to meet the set deadlines for the project, leading to the cancellation of the license for the planned construction.
This means the group will also take control of assets that were previously transferred to its subsidiaries.
In response to this decision, Macau Legend Development stated: “The Cape Verde Government is allegedly entitled to exercise the right to terminate the Convention and the Concessions, and to assume control of all assets previously assigned to the subsidiaries, as well as the assets already constructed by the subsidiaries, under the Investment Project.
“The company is currently actively seeking legal advice in Cape Verde on the appropriate course of action and intends to vigorously contest these allegations to safeguard the interest of the company and its shareholders.”
Prime Minister Ulisses Correia e Silva, the Council of Ministers also signed a statement, which said: “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.
“The State of Cape Verde gave MLD companies 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. Contractual violations committed by MLD occurred on several levels.”
One of the reasons for the delays was cited as the consequences of the COVID pandemic, although the agreement was signed back in 2015. However, the Government of Cape Verde rejected this explanation.
Despite the growth of Macau’s gaming sector and the economy as a whole, the decision of the Cape Verde Government will be seen as a step backward for the region.
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