Another legal battle for Zaldy Co: Hotel feud with gaming firm
Resigned lawmaker and fugitive Rep. Zaldy Co, already under fire amid a massive corruption scandal which has led to two arrest warrants against him, is facing a fresh legal battle in his multibillion-peso conflict against DigiPlus Interactive Corp., the operator of BingoPlus, ArenaPlus and GameZone.
Villaraza and Angcangco, the legal counsel of the online gaming giant, confirmed on Sunday “an arbitration case” between DigiPlus and its business partner, Co’s Eco Leisure and Hospitality Holdings Co., over their dispute involving Midas Hotel and Casino.
“We confirm that there was an arbitration case and DigiPlus won the case,” the law firm said in a statement.
The group, however, said the embattled ex-congressman sought to overturn the decision before a regional trial court (RTC) in Pasig.
“The case remains unresolved,” the law firm said.
Based on its amended annual report in April this year, DigiPlus said the case is docketed as Civil Case R-PSG-22-02495-SP, Regional Trial Court, Pasig City, Branch 268.
‘Problematic business partner’
The yearslong issue between DigiPlus and Co surfaced after lawyer Jesus Falcis, who has been a vocal critic of politicians linked to the infrastructure corruption mess, made a social media post last Friday—just a few hours after authorities raided Midas to look for executives of Sunwest Corp., another firm linked to Co.
Falcis claimed that DigiPlus wanted to sell its shares in Midas in 2019 after determining “through personal dealings and due diligence” that Co was a “problematic business partner.”
Unpaid reimbursements
According to Falcis’ post, the gaming firm already had initial talks with a potential buyer, with the transaction value pegged at P2.5 billion.
However, Eco Leisure invoked its right of first refusal and offered to acquire DigiPlus’ stake instead, matching the price bid.
The problem erupted after Co’s firm refused to settle the full amount, as it was only willing to pay P1 billion, claiming DigiPlus owed them billions in unpaid reimbursements.
Eco Leisure filed a case to force DigiPlus to take the P1-billion payment, but the latter won.
Co then filed an appeal at the Pasig RTC in 2022.
Falcis even attached a screenshot of a Biz Buzz column published by the Inquirer in March 2022 that hinted at a “big gaming firm… locked in a bitter dispute with its partner in a mid-size casino-hotel venture.”
