According to the Portuguese news agency Lusa, the government has sent a letter to STDM and SJM pointing out that notification of changes in its shareholding structure have not yet been sent to the government for approval, and asking for a clarification. “Faced with media news, the government sent a letter to [SJM], which explained what has happened and mentioned that the situation was not clear,” Lusa was quoted as reporting by Macau Daily Times. However, the source quoted by Lusa added that the government “will do nothing until the situation becomes clear and the dispute within Stanley Ho’s family is solved”. It is apparently still waiting for a response to its letter to STDM.

Only in Macau could a regulator be as clumsy and impotent as this. It is perfectly clear what has happened, to all but the blindest of the blind. One part of the family has taken control of the gaming empire and another part of the family doesn’t like it. But the part of the family that took control of STDM, and thus SJM, did not get government approval for the share transfer. All the chief executive has to do is pull Stanley Ho and his two families – belonging to No. 3 and No. 2 – into his office and ask them, “Okay, Stanley, do you or do you not want this stake to be transferred? If yes, we will consider whether to approve it. If no, it will be rejected, and here is the procedure we will follow if you do not reverse the share transfer yourselves.”

The real issue, however, runs much deeper than that, of course. But this government cannot continue to be paralyzed by indecision forever. At some stage it has to confront the fact that one of the feuding parties in this dispute already controls another gaming operator in Macau, and that gaining control of SJM, albeit indirectly, is a violation of everything that stands behind the 2002 liberalization of the industry. Stay tuned for more drama.

Used with permission and copyright IntelMacau