Macau’s Easy Money Thief and Poverty
Written on November 11, 2007 by admin
For forty years, one man, Stanley Ho, enjoyed a monopoly to run mega casinos in Macau. That monopoly was brought to an end five years ago by the Chinese government.
The Macau authorities have since been anxious to clean up the industry and attract more sophisticated western operators. In the past, the casino industry was dogged by a very unsavoury reputation, was tainted by organised crime, the occasional shooting and gang warfare that the Portuguese colonisers seemed ill-equipped to handle.
But these problems did little to diminish the allure of Macau as the haven of dreams. It’s the only part of China where this sort of gambling is permitted.
Every day you can see punters riding the one-hour jetfoil from Hong to chase their dreams. As mainland Chinese become wealthier, Macau has become an attractive option for them as well.
Not surprisingly, casinos also provide a convenient opportunity to mop up dodgy money, of which there’s plenty in China, especially amongst officials on the take.
In recent years, the gambling scene in Macau has been substantially gentrified, if such a thing can be said of this industry. Swanky world class casinos by the biggest Las Vegas players have mushroomed all over the place, replacing the drab, grotty crime-ridden gambling dens of old.
The new-style gaming houses are marketed as family-friendly establishments, with an extensive array of amenities and amusements, including fantastic food and resort-style hotels.
Also on offer are major musical and sporting events which Mr Ho would never have contemplated. Typical of this new style casino is the Venetian Macau, billed as the biggest casino-hotel in the world. Macau has now edged Las Vegas to claim the position of the world’s biggest casino market.
All this wonderful news about the good times and the booming economy has now vacated the front pages, to be replaced by a less flattering look at a darker side of the enclave.
The former head of transport and public works, Mr Ao Man-long is accused of taking bribes, money-laundering and abuse of power. The details are as murky as they come, but the gist of it is that he took bribes for approving juicy land deals and engaged in a host of other dishonest business deals.
If convicted, he faces a maximum of 25 years behind bars. He’s now 51. Amongst the assets found in his possession were cash and luxury goods worth a mind-boggling US$100 million.
It has been a while since a story of this magnitude has so riveted the tiny territory. What’s interesting about this case is how it mirrors the booming construction industry.
Mr Ao presided over the transformation of the cityscape during a construction boom unprecedented in Macau’s history. As the official who allocated land and approved public works, he has conceivably dealt with a large number of investors.
Which of these people offered bribes? Details will emerge in the coming weeks.
Graft-busters also accuse Mr Ao of demanding three percent for introducing local businesses to foreign property developers. One thing you can be sure of, this trial will have some very far-reaching ramifications for the entire Macau economy.
For the Chief executive, Edmund Ho, who appointed Mr Ao, the timing couldn’t be worse. Mr Ho has been credited with eradicating gang-related crime and turning Macau from a dangerous no-go zone to a tourist destination that now challenges Hong Kong.
The irony for Macau is that even though the economy grew by a bizarre 17% in 2006, there’s a segment of the population that has seen little to celebrate.
Discontent has been surfacing with demonstrations by the lowest paid who complain about rising costs of living and competition for jobs from workers from China who are prepared to accept lower wages which are often double what they make in China.
The details of illegally-acquired wealth now being splashed on headlines will only further alienate these people and heighten social instability. The glittering casino lights don’t shine for everyone. With a population of only 540,000, it beggars belief that as many as 17.5% are considered to be living in poverty in a land of milk and honey.
Technorati Tags: cotai, macao, macau, Macau Economy, Stanley Ho, Venetian Macao
If you enjoyed this post you might want to subscribe to our RSS Feed!
- 
- 
- 
- 
Take a look to these similar posts!
