Commonwealth Casino Commission Executive Director Edward C. Deleon Guerrero told the House committee that the commission is “unable to comment as the issue is currently under investigation.”
For his part, Lottery Commission Chairman Mark Rabauliman told the committee chairman, Rep. Ralph N. Yumul, in a letter last month:
“As you are aware, Section 2 of the CLA [casino license agreement] speaks to the enforcement of this agreement and states, ‘Upon issuance of the casino license, the authority of the Lottery Commission over this license shall cease and the Office of the Governor shall have the authority for enforcement of the terms and conditions of this license agreement.’”
Rabauliman added, “The questions you have presented in your letter and directed to me as the chairman of the Commonwealth Lottery Commission are beyond the scope and authority of the Lottery Commission to respond to at this point. As enforcement functions of the CLA are shared, in parts, by the Office of the Governor and the Commonwealth Casino Commission, furnishing a request to their respective offices would be of greater benefit to you and your committee.”
It never stopped
In a statement, Imperial Pacific International said the flow of financial support from the community benefit fund never stopped.
IPI added that the contribution “is based on ‘certain conditions.’”
IPI said it has “a strong sense of community responsibility and is one of the top contributors to the improvement of residents’ well-being.”
“One example of our community effort,” IPI said, “is the contribution to the Community Benefit Fund outlined by the Casino License Agreement. The scale of this fund is unprecedented with an annual payment of $20 million and the benefit is widespread. The contribution is based on certain conditions and currently we are working diligently with the government to ensure the conditions are met. Nonetheless, the flow of financial support from the community benefit fund to community programs never stopped. To date, there are still millions of dollars in the fund.”
Imperial Pacific said it “will continue to support and protect the community’s well-being by actively engaging and leading programs in the area of environment, destination enhancement, culture, education and social services.”
Lottery Commission’s authority questioned
Rabauliman’s reply to the House Gaming Committee has reinforced the House minority bloc’s position that the lottery commission no longer has authority over the enforcement of the casino license agreement, House Minority Leader Edwin Propst said.
In an interview, Propst said he and his colleagues in the minority bloc have been questioning all along the authority of the lottery commission to make decisions on the requests of IPI to amend the license agreement.
“The lottery commission chairman’s letter just confirmed what we have been saying all along,” Propst said.
He added that the House minority bloc is now questioning all the decisions that the lottery commission has made over the years, and these include the amendments to the agreement requested by IPI.
Another member of the House minority bloc, Rep. Tina Sablan, said they want to know “how much has IPI actually distributed from the Community Benefit Fund? Who or which community programs received those funds, and in what amounts? Is IPI complying with the terms of its license?”
She said “IPI fails to address any of these questions. The casino commission refuses to address these questions. The lottery commission not only refuses to address these questions but also claims to have no authority over the license anymore to enforce that requirement — even as they have approved eight license amendments favorable to IPI these past five years.”
Sablan said “both regulatory bodies point fingers at the governor to answer these questions. IPI is required by the license to consult with the governor on the distribution of Community Benefit Funds, so he should have a record of where these funds have gone and whether or not IPI is in compliance with this part of the license. But the governor has been totally silent on the matter thus far.”
Asked for comment, Press Secretary Kevin Bautista said on Thursday:
“The governor believes that negotiations and possible amendments of the casino license should be an open and transparent process that allows for the public to participate. Designating the lottery commission to perform this function has allowed for public participation through hearings and dialogue.”
