A legal battle is set to escalate after Macau Legend Development revealed it intends to “vigorously contest” claims made by the Cape Verde Government.
This follows claims from the Cape Verde Government that Macau Legend Development had fallen short of its project deadlines, prompting them to cancel the license for the proposed development.
It means that the group will also assume control of the assets previously assigned to the subsidiaries.
Responding to the 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 cited for the delays was the hold up due to the COVID pandemic, with it having been signed originally in 2015, however, this was dismissed by the government of Cape Verde.
It follows a period of growth for the Macau gaming sector and wider economy, nonetheless, the decision of the Cape Verde government will be viewed as something of a setback for the region.
