US trade union links mainland enterprises to junket groups

The International Union of Operating Engineers (IUOE), based in the United States, says it has identified enterprises in mainland China that have been set up by individuals linked to Macau junket groups.
On its website – Macau Gaming Watch – the U.S. trade union released comprising a catalogue of 29 companies based in mainland Chinese cities, including Zhuhai, Shenzhen and Beijing. The list also includes 29 companies established in Hong Kong.
The trade union said in a press statement that many of the companies are involved in the financial lending and investment consulting sectors.
“A set of Beijing-based companies linked to the ‘Cui’ family behind Macau’s Heng Sheng junket group operate as jewelry, pawnshop and loan outfits,” the union stated. IUOE added that the list also includes companies controlled by Macau’s most influential junket groups, such as SunCity Group, David Group, Tak Chun Group and Meg-Star International.
“We are aware of no existing research efforts to systematically identify the corporate assets of Macau’s junket operators in the Chinese mainland and other locations outside of Macau. This list represents, we believe, the first glimpse of junket interests to scale inside of China,” said IUOE representative Jeff Fielder in a statement.
Mr Fiedler believes that the list, compiled by IUOE, could serve as a good starting point for government agencies in China, the United States and other jurisdictions who wish to further scrutinize Macau’s junket networks, probing their corporate infrastructures and their ability to handle cross-border capital movement.
The trade union said that it also sent copies of the list to the Chinese Communist Party’s Central Commission for Discipline Inspection, as well as to government agencies in Macau and the United States.
Last week, Wynn Macau spearheaded declines in Macau gaming stocks after an analyst’s report revealed that a junket group operating out of the company’s casino in the city lost millions of Hong Kong dollars due to embezzlement. The junket group Dore later confirmed it had been the victim of internal fraud committed by a former employee.
The IUOE, which represents some Wynn employees, called for greater transparency from casino companies regarding their dealings with junket operators, Bloomberg reported.
“What should be troubling to investors in casino stocks is that casinos don’t disclose to the public what junkets they’re doing business with,” Mr Fiedler explained in an e-mail. Casino revenue could be affected if Dore has trouble raising money from lenders to provide credit for gamblers, he added.
“This lack of transparency makes it impossible right now for investors to adequately assess risk in Macau casinos,” he stated. He concluded by saying, “If the shareholding public had access to better information, then there may not be these confused market panics like what we saw this past week.” CP