SENATE President Jude U. Hofschneider reminded his colleagues that Imperial Pacific International has paid the CNMI over $200 million in taxes, license and fees in the past few years.
He pointed out that the over $204.8 million that the company paid out are audited numbers generated from IPI’s casino from 2015 to 2018.
According to Hofschneider, IPI paid over $16.2 million in license and fees in 2015; more than $35.6 million in taxes and almost $16 million in license and fees in 2016; over $70.4 million in taxes and more than $16.2 million in license and fees in 2017; and roughly $46.3 million in taxes and just under $4 million in license and fees in 2018.
IPI’s contributions prevented the NMI Retirement Fund from collapsing, he added.
Hofschneider said every time someone points out the faults of the casino industry, “they should also recall that without the millions of dollars generated from IPI, the CNMI government would not have fulfilled its obligation to retirees.”
He also urged his fellow lawmakers to come up with revenue-generating legislation so that the Senate and the House of Representatives can “push things forward.”
Advisory committee
Sen. Paul A. Manglona, for his part, spoke about the importance of the Development Plan Advisory Committee, which he said was created under the casino license agreement to oversee the construction and completion of the initial gaming facility and the first phase of IPI’s integrated resort.
A January 2018 DPAC report stated that the intent was to create a committee consisting of experts with experience of 30 to 40 years and legal counsel with similar experience, Manglona said.
“That’s what we need to do. I don’t think it is right that we… do not bring all the issues on the table so that we can discuss them.”
The senator said that he wants to help IPI, but the company needs to be up-front.
“Why is it that when I wrote a letter to the Office of the Public Auditor last year to conduct an audit of the casino benefit fund, they will not open their books?… What is there to hide…when the community benefit fund requirement is clear in the casino license agreement?” he asked.
Hofschneider acknowledged Manglona’s concerns and reiterated that the Senate should also offer solutions.
He said there is a need to obtain more information from IPI, which is also requesting amendments to the casino license agreement.
“Let’s try and pitch in our efforts to help this casino industry,” Hofschneider said.
He noted that without the revenue that the CNMI government used to collect from IPI — which has shut down since March 2020 due to the Covid-19 pandemic — “we’re paying the retirees’ 25% benefits.”
But he also acknowledged that IPI is responsible for the many challenges it is facing.
Manglona agreed with Hofschneider that the Saipan casino legislation — which the Rota senator opposed — was passed primarily to benefit the retirees.
“And for that reason, we need to do everything we can to solve this, but at the same time, we need to do it right.”
