THE Senate’s two minority bloc members, Edith Deleon Guerrero and Paul A. Manglona, on Friday expressed concern about the lack of action on Senate Bill 22-23, which would authorize a second casino license in the event that Imperial Pacific International’s exclusive casino license is revoked by the Commonwealth Casino Commission.
Introduced by the two senators in February, the bill was referred to the Senate Committee on Fiscal Affairs chaired by Sen. Victor B. Hocog.
Deleon Guerrero and Manglona said based on the Senate rules, the committee’s deadline to act on the measure was on April 18, 2021.
In a letter to Senate President Jude U. Hofschneider, Deleon Guerrero and Manglona said they are concerned about the lack of action and urgency on S.B. 22-23 amid the “detrimental financial crisis” that IPI is facing now, “with seemingly no end in sight.”
They noted that on April 22, 2021, the casino commission suspended IPI’s license and imposed various fines due to IPI’s inability to pay all of its obligations in a timely manner.
S.B. 22-states: “It is more than probable that the exclusive casino operator will not be able to complete the construction of its initial gaming facility and overcome all of its financial and legal problems which may result in the revocation of its casino license. If the exclusive casino license is revoked, the CNMI should take the opportunity to overhaul the casino industry by revisiting the casino statutory provisions and regulations to improve the industry.”
Development plan
The senators also asked Hofschneider to act on Senate Joint Resolution 22-01, which requests Gov. Ralph DLG Torres to instruct the Development Plan Advisory Committee or DPAC to immediately provide a report to the Legislature regarding the casino project.
The two senators noted that the resolution was introduced on March 11, 2021.
A few weeks ago, they added, District Court for NMI Chief Judge Ramona V. Manglona, entered a $5.91 million default judgment in favor of seven Chinese construction workers who sued IPI, its contractor and subcontractor over alleged labor violations, including human trafficking.
“It is imperative that we take action on [our bill and resolution] as the casino is in a constant state of both financial and physical deterioration,” the senators said.
Saying that IPI faces a “bleak future,” Deleon Guerrero and Manglona noted that IPI Chief Executive Officer Ray N. Yumul has made numerous requests to the CNMI government.
The Senate, for its part, must be reminded of IPI’s growing obligations to the CNMI government, Deleon Guerrero and Manglona said.
These include DPAC fees of $400,000 annually, the annual regulatory fee of $3 million, the community benefit fund, which has now accumulated to $57 million, the annual casino license fee of $15.5 million, future wages via escrow of $800,000, business gross revenue tax of approximately $9.4 million, and other outstanding liabilities and fees including back wages of IPI’s former employees.
Deleon Guerrero and Manglona are hoping that the Senate can create a plan to respond to Yumul’s letter and address the needs of the casino industry, including “possible solutions to this colossal matter.”
