FORMER Gov. Juan N. Babauta said it’s “premature” to revoke Imperial Pacific International’s exclusive license because he believes that “corrective actions” can still be taken to revive the casino industry.
The former governor was invited to speak to the Current Issues class of Northern Marianas College on Thursday, and share his thoughts about the island’s casino industry.
Babauta described IPI’s situation as “paradox in paradise.” Allowing IPI to keep its license, he added, “is contradictory” to the many lawsuits resulting from IPI’s “nonpayment of fees, labor violations and other infractions of rules.”
But if IPI’s license is revoked, he said, “it is absurd that the CNMI will carry the financial burden of dismantling the casino hotel in Garapan. The structural integrity of the building is in question and no one would lease or buy it,” he added.
He said IPI “is an albatross or has become a burden, an obstacle to success.”
IPI, he added, is “going through difficult and challenging times. Public confidence in IPI is at an all-time low, and the public perception is that IPI is in demise and will likely lose its exclusive casino license and shut down.”
However, he said he believes that the general public is also eager to hear from IPI owners — what they plan to do moving forward.
Babauta said IPI must develop a plan of action to reach out to members of the public and inform them of corrective actions that will be taken to revive the casino industry.
Dialogues
Instead of revoking IPI’s exclusive casino license, Babauta said there should be dialogues among IPI, members of the community and government agencies.
He said such dialogues will discuss what has transpired with IPI, its shortcomings, successes and specific plans to revive the casino as a viable industry, and how it will contribute to the economy and partner with the community.
Babauta said IPI’s chief executive officer could initiate these dialogues and speak to business and community organizations, schools, the media and explain IPI’s future plans.
Through a negotiated settlement with the CNMI government, IPI can still resolve all its outstanding obligations to vendors, contractors, landlords and government agencies, Babauta said.
He said it is also vitally important that the cases and lawsuits against IPI be addressed immediately and promptly.
There must be a complete and accurate inventory of all IPI assets, and IPI should address lingering questions and doubts regarding the structural integrity of the casino and hotel facilities in Garapan.
With approval from the IPI board, Babauta said the CEO can also explain the current and future financial assets of IPI and how it will resolve outstanding obligations and resume the operations of the casino.
Babauta said IPI can also reach out to the federal government, specifically to the U.S. Department of Labor and address labor-related issues including violations and citations.
At the federal level, when necessary, the CEO can seek guidance through the Office of Insular Affairs when reaching out to other federal government agencies, Babauta said.
IPI, he added, must reorganize, develop procurement policies and rules to control unnecessary expenditures, and require the CEO to submit a weekly or monthly financial report.
It is also important that the CEO and the IPI board or owners are “on the same page,” Babauta said.
In addition, IPI must renew its commitment to create employment opportunities for local residents, implement a controlled development of the casino industry, and give more respect to the local culture.
Amend the casino law
Babauta also talked about the possibility of amending the casino law and regulations “to avoid infighting and confusion within the government.”
“Should the CNMI government revoke the exclusive casino license and shut down the casino? How can we assure that the CNMI government own up to mistakes made? How can we assure that the building is not going to sit idle and rot? Should the CNMI government give it a chance? How can we ensure that IPI will own up to its mistakes and turn the casino into a viable industry?”
Babauta said these are the questions that can guide the community and IPI in making a collaborative decision.
“This is not an easy decision to make except to those that are already predisposed on the issue,” he added. “This is going to be a test on whether the government and the private sector can come together to be problem solvers and chart a future that we can be proud of.”
Former Gov. Juan N. Babauta speaks with the Current Issues students of Northern Marianas College on Thursday. Also in photo are Sen. Paul Manglona, second left, NMC President Galvin Deleon Guerrero, third right, and Current Issues associate professor Clement Bermudes, right.
