IMPERIAL Pacific International is “praying for legislative action” that will reduce the annual exclusive casino license fee amount for the years 2020 and 2021.
In a letter to Senate President Jude U. Hofschneider and Speaker Edmund S. Villagomez, IPI Chief Executive Officer Ray N. Yumul said for the year 2020, the casino investor will pay, instead of $15 million, $5.7 million and in 2021, $6.5 million. But in 2022, IPI said it will pay the full amount of $15.5 million.
In 2023, IPI said it will pay the $15.5 million plus $1.9 million as partial payment for the balance in 2020.
Beginning 2024, IPI said it will pay the annual $15.5 million plus $1.9 million as partial payment for the balance in 2020, and $1.8 million as partial payment for the balance in 2021 license fee obligation.
But IPI is also asking for a reduced regulatory fee, which is currently $3 million and is used by the Commonwealth Casino Commission for its personnel and operations.
Yumul said IPI wants to pay “an amount that is minimally required for the regulatory body to operate for the periods IPI remains closed.”
He said IPI strongly supports the Governor’s Covid-19 Task Force and the social distancing guidelines, adding that if allowed to operate online gaming, the casino investor will attract players who prefer to stay home while gambling.
The Covid-19 pandemic closed businesses, Yumul said, and “IPI fell economically to its knees.”
“However ill-advised, IPI circled its wagons in a futile attempt to save itself to the detriment of our business partners, the government, our community and most especially our staff and guest workers,” Yumul said.
“Now, there is new leadership in IPI, and God willing, my staff and I will attempt the difficult task of rebuilding IPI’s reputation that is now so severely stained,” he added.
“The road to recovery is long and winding with the prospect of knowing that the world’s borders will remain closed to travelers for the rest of this year and perhaps the year to come as well,” Yumul said.
He added that given the industry IPI is in, and its size, it did not receive any assistance from the federal nor even the local government during the pandemic. Dealing with competing priorities was the new reality for IPI in the past year, Yumul said.
With limited financial resources, he said IPI had to make the tough choice between paying its employees, repatriating them, keeping the lights on, paying judgments, the annual license fee, the regulatory fee, taxes and most especially, its vendors, Yumul said.
IPI is also under “extreme pressure” as it has to meet the deadline in completing the construction of its hotel in Garapan, he added.
The casino investor, he said, believes that if given relief, it would be able to secure from its new investor fresh funding that would solve the financial dilemma it now faces.
“We fully appreciate the understanding and support we received from our employees and the community in the past year. We are regrettably remorseful to have treated our business partners with cold shoulders. We might not have been perfect in the context of completing priorities and properly managing limited resources; however, we strive to recover and we are doing our best to fulfill the outstanding obligations owed, to build the capability to reopen the casino and to restore jobs to the people of the CNMI and rebuild trust with our business partners and the government,” Yumul said.
“To support our ‘reset and recover strategy’ we are now humbly asking for the support of the community, our business partners and the government. We are committed to be completely transparent in this renewed partnership if given a chance and we firmly believe that we can pull through together through this harsh time we are all facing,” he added.
