Wednesday, December 3, 2014

Aquis – A Fantasy Laid Bare

The Fungs attempt to purchase the Cairns Reef Casino Trust (RCT) collapsed due to non-fulfilment of 13 unmet probity conditions by the 28 November deadline as well as Aquis’s inability to convince 90% of the RCT unit holders to sell their shares. So they moved on to Plan B, and have just bought the unprofitable Canberra Casino for $6m on the understanding that probity approvals from the ACT will be obtained by Christmas – but it is not in the bag yet.  These are intriguing developments as the Aquis saga concludes its second year in the public gaze.

It is worth remembering that not so long ago Tony Fung had convinced local business people, politicians and media that he could go it alone and raise the $8.15 billion for the Yorkeys Knob development without any other Queensland based leverage. Jetting in rich Chinese entrepreneurs was supposed to demonstrate his credentials. However, the investors showed no interest. Fung’s desire had always been to get a casino licence above all else and the $260 million purchase of the RCT became the pathway by which Aquis would be able to gain credibility in the gaming arena and, hopefully, then raise funds on the Hong Kong stock exchange for Aquis in 2016.

Tied to the RCT bid and hiding under the radar for most was Aquis’s agreement to buy the Canberra Casino. Both are owned by Casinos Austria which has been desperate to offload its loss-making and ageing property in the ACT for some time. The ACT does not permit poker machines and this has had a substantial impact on its ability to make money.

The ACT’s Gambling and Racing Commission (GRC) and Queensland’s Office of Liquor and Gaming Regulation (OLGR) were supposed to be working together on Tony Fung’s probity requirements. However, it has now become clear that Fung gave up on trying to meet the stringent conditions for the RCT, failing with 13 of them and not even bothering to turn up to three crucial meetings. Suddenly, the purchase cost of the Canberra Casino dropped from $9m to $6m and the GRC appears to have caved in on the probity issue. After all, $6m is a little different from $260m!

How the emperor’s clothes have been exposed! It is difficult to imagine how a failing, minor casino with low visitation in the ACT can act as leverage for a future Aquis development at Yorkeys Knob. By extending the purchase option for the 340 hectare site until 2021, Tony Fung has not done the Cairns community any favours. Few believe that the Aquis development will go ahead but it will continue to hang around like a bad smell and poison the potential of this town for as long as fanciful groupthink, promulgated by mainstream vested interests, continues to be the order of the day.

For example, every time Mayor Manning is asked about new developments for the city, the response is always "lets wait and see what happens with Aquis". In desperation he and other pro-Aquis groups even flew to Hong Kong, (at whose expense?), on a so-called rescue mission! Cairns can’t afford to wait any longer. Aquis is over. Fung’s open letter to the Cairns community was really a thank you and goodbye. Now let’s continue building a sustainable future for our city, one that retains its unique natural attractions.

Denis Walls
Spokesperson
Aquis Aware Coalition of Concerned Citizens

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