One of the investors in a project to develop a gaming resort in the Primorye region of Russia has been detained following allegations of business malpractices relating to the construction of a waste treatment facility.
Summit Ascent Holdings, a Hong Kong-based company in which Lawrence Ho has a significant stake, confirmed that Oleg Drozdov had been detained for investigation by the Russian law enforcement authorities.
Drozdov is an indirect minority shareholder in Oriental Regent, an investment holding company that owns First Gambling Company of the East, which is developing the gaming and resort project in Primorye. Oriental Regent is 46 per cent owned by a subsidiary of Summit Ascent, five per cent by a subsidiary of Melco International Development, 19 per cent by a subsidiary of Firich Enterprise and 30 per cent by Elegant City. The latter, which is incorporated in the British Virgin Islands, is owned by Drozdov.
Following newspaper reports in Russia, Summit Ascent announced that Sergey I Bondar, attorney advocate acting for Drozdov, had confirmed that his client had been detained for questioning by the authorities. It was also confirmed that the investigation relates to an allegation of business malpractices in relation to the construction of a waste treatment facility in 2009/10.
The investigation does not relate to the Primorye gaming project or to Oriental Regent and there are no formal charges against Drozdov yet.
The company has received direct assurances from the first vice government of the Primorsky Administration that the investigation will not in affect the project or its investment in the region.
