THE Commonwealth Casino Commission works for the CNMI and not for Imperial Pacific International, the commission’s executive director told members of the House Gaming Committee last week.
Commission Executive Director Andrew Yeom said he “strongly disagrees” with Rep. Celina Babauta who told him “it appears that you guys are protecting [IPI’s] interest, not the CNMI government’s.”
Babauta said she is frustrated by the commission’s “lack of serious claims” against IPI in the District Court for NMI’s recent order granting a writ of execution to sell IPI’s assets to satisfy the $5.4 million judgment against the casino developer.
She asked Yeom, “Why hasn’t the commission claimed a stake on any of their assets if they, IPI, owe the casino commission?”
“I find it frustrating that CCC has not really laid any serious claims against IPI in terms of financial penalty other than the $6 million. It appears at least from our perspective, from our viewpoint, that you work for the CNMI government. However your reluctance to revoke [IPI’s] license, [makes] it appear that you guys are protecting their interest, not the CNMI government,” Babauta told Yeom.
“I strongly disagree with that,” he replied. “How can I be protecting a private company when I work for the Commonwealth?”
Babauta said, “Well, you have given them so much leeway.”
Yeom said, “It is the due process that we are dealing with. I have no intention of giving any personal favor to IPI whatsoever.”
He added, “I understand [you are frustrated], and so are we. But we have to give them, IPI, due process and we want to do it correctly and legally. Only that way can everything be solved. I am sure they will appeal all of our decisions, and when they do we will win that as well in court.”
Yeom also said that it is the Department of Finance that collects the license fees, the regulatory fees and taxes from IPI. Moreover, the department already has a lien on IPI, he said.
For its part, the casino commission has already suspended IPI’s casino license, which is “pretty much a death sentence” for IPI, he said.
IPI, he added, can no longer go anywhere in the international community to get help and raise funds to pay off its debts.
He said the commission has also imposed a $6 million fine on IPI and is “definitely moving in that direction,” referring to the revocation of IPI’s casino license.
“I’m not here to argue with you,” he told Babauta.
Mike Ernest, the casino commission’s outgoing legal counsel, said most of the claims against IPI that were stipulated in the commission orders are payable to the CNMI government.
These include the community benefit fund and the annual license fee, Ernest said.
The only money that will directly go to the commission is the $3 million annual regulatory fee and the $6 million fine imposed on IPI in Commission Order 002 for failing to pay the annual license fee, he added.
He said the commission is more interested in IPI’s compliance than just punishing the casino investor.
He also noted that even though the lottery commission has “forgiven” IPI, the casino commission still suspended IPI’s license.
He said the license is suspended indefinitely until IPI complies with most of the casino commission’s orders.
Commonwealth Casino Commission Executive Director Andrew Yeom speaks during the House Gaming Committee meeting on Thursday last week.
