Imperial Pacific International Director How Yo Chi answers a question from the Commonwealth Casino Commission during a meeting on Thursday at the CCC office in Gualo Rai.
Commonwealth Casino Commission Chairman Edward C. Deleon Guerrero, center, with Vice Chairman Ralph S. Demapan, right, and Commissioner Mario Taitano during a meeting on Thursday.
THE Commonwealth Casino Commission on Thursday determined that 30 days is a “reasonable time” for Imperial Pacific International to pay the CNMI government $62 million in outstanding casino license fees. Failure to do so will result in the revocation of IPI’s exclusive casino license.
Commission Chairman Edward C. Deleon Guerrero, Vice Chairman Ralph S. Demapan, Commissioners Ramon Dela Cruz, Mario Taitano and Martin Mendiola convened to comply with the Supreme Court’s order that “CCC must now decide on a reasonable deadline for IPI to pay.”
According to the commission, IPI owes the Commonwealth $15.5 million in annual exclusive casino license fee for 2020, 2021, 2022 and 2023 for a total of $62 million.
The 30-day payment period starts as soon as IPI acknowledges receipt of the commission’s order, which, according to Dela Cruz, should be issued on Monday.
Prior to their determination of a reasonable deadline, the commissioners gave IPI Director How Yo Chi an opportunity to present the casino investor’s payment proposal.
Chi told them that it’s difficult for IPI to decide on a reasonable timeline if their exclusive license remains suspended. He said IPI offers to pay the CNMI government $5 million and the commission $1 million for a total of $6 million annually, during a two- to four-year “transition period” to allow IPI to resume its casino operation and finish the hotel project. The IPI casino has been closed since March 2020.
Chi said they are also asking the commission to lift the suspension of IPI’s exclusive casino license.
He said IPI is ready to pay $6 million to the central government and to the commission as soon as the suspension is lifted.
He added that a Japanese investor has pledged to put $350 million in the stalled casino-hotel project provided that IPI retains an exclusive casino license.
For his part, Deleon Guerrero came up with his own payment proposal for IPI.
He said starting on Aug. 12, 2024, IPI should make “payments [of] 5,167,523.33 each year” until the fees are paid in full by Aug. 12, 2032.
These payments “would be in addition to the annual license fee and casino regulatory fee due each year, and would be in addition to the payment of the outstanding 2020, 2021, and 2022 casino regulatory fee amounts.”
This is also in addition to the 2023 annual license fee and the 2023 regulatory fee, which accrued after the end of the Covid-19 “force majeure event.”
The commission, however, decided on a 30-day payment period.
Deleon Guerrero he will not take part in the tribunal that will convene for a revocation hearing if IPI fails to pay in 30 days, but he reiterated his position that IPI is not suitable to hold the exclusive license.
