Dynasty asks TCGCC to show good faith first

The new owners of Tinian Dynasty Hotel and Casino, which is being pressed to deposit a $100,000 “investigation fee” with the Tinian Casino Gaming Control Commission, is asking for a small compromise—for the commission to “show good faith” by first issuing an interim casino authorization.

According to a statement from the Tinian and Aguiguan Legislative Delegation, Chinese Strategic Holdings Ltd. chair and executive director Kwok Hing Wilfred Lam and its subsidiary, Tinian Entertainment Co., is pushing for this compromise before paying the additional $100,000 while the suitability investigation for their plenary casino gaming license is ongoing.

Responding to Tinian Mayor Joey P. San Nicolas’ request for TEC to pay the $100,000 investigation fee, Lam said they have already paid a $100,000 investigation fee and the amount the commission is asking for again is on top of that amount they’ve already paid.

“We have been doing our best to work with the TCGCC through this process. We had already paid the $100,000 investigation fee as well as $200,000 application fee,” he said.

Lam said it was troubling that the TCGCC already spent the initial $100,000 investigation fee even “before the investigation had begun.”

According to the Tinian Legislative Delegation, Lam wrote TCGCC executive director Lucy Blanco-Maritita on Feb. 13, 2015, to “request the initiation of suitability finding of Chinese Strategic Holdings Ltd. and its direct and indirect wholly owned subsidiaries…including TEC.”

During the TCGCC public meeting last Thursday, Sept. 17, TCGCC members denied receiving any investigative fee from TEC, stating that they didn’t consider the February payment as payment for TEC’s investigation.

Lam said that they never authorized the money to be spent on anything other than their casino license application suitability investigation.

“The demand for an additional $100,000 before the TCGCC will proceed with the investigation gives us great concern. The expenditure of additional funds will require a showing of good faith,” Lam said.

TCGCC executive director says

In a separate statement, Maratita said the investigative fee hasn’t been paid yet as of Sept. 16.

TEC was given until Sept. 9 to deposit with TCGCC the additional $100,000 refundable investigation fee.

TEC and Chinese Strategic submitted its application for a casino license last Sept. 3, but the documents were actually due on Aug. 24, 2015. Documents required to be submitted by Sept. 4 are still pending as of Sept. 7.

Maratita said TCGCC stands ready to expedite the suitability review process for TEC/Chinese Strategic’s casino license application, but they cannot proceed as of Sept. 15 “since neither the documents requested nor the additional licensing costs deposits have been submitted or paid.”

San Nicolas responds

San Nicolas also took issue with Blanco-Maratita’s statement last week that questioned why the mayor has not come to the defense of the commission much earlier.

San Nicolas said that he has been very public about his support of further developing Tinian’s casino industry and keeping the Tinian Dynasty Hotel and Casino doors open.

“There should be no question as to where my commitment lies and that’s with the people whose livelihoods are adversely impacted by the casino’s closure. [Blanco-Maratita’s] comments are illustrative of her adversarial posture throughout this process. This is not about supporting TCGCC or TEC. It is about finding solutions to help the people who will be out of jobs and not having the means to support their families,” San Nicolas said.

Tinian Dynasty early issued a statement that it will close its doors this month in the wake of the impact of Typhoon Soudelor, which has severely affected their ability to operate.

San Nicolas said that if Dynasty were to close, about 600 Dynasty employees and more than 40 municipal employees would lose their jobs.

Ability to be impartial

The Tinian Legislative Delegation also questioned the ability of the commission to remain impartial in the vetting process, citing Blanco-Maratita’s “continuous public criticism” of TEC during the license application process.

Francisco M. Borja, chairman of the Tinian Legislative Delegation and Senate vice president, said: “It is inappropriate to discuss the suitability of casino license applicants to the public, especially if they are still undergoing the investigation process. How can TEC expect fair treatment when past acts of Hong Kong Entertainment, which has already entered into a settlement agreement with the federal government with regards to the FinCEN fines, is now being publicly attributed to them by the executive director?”

The Tinian Legislative Delegation cited a statement Blanco-Maratita gave to the press on Sept. 9, defending TCGCC’s role in the closure of the Dynasty, “shifting the blame to Mega Stars and Hong Kong Entertainment, calling them ‘uncooperative,’ which she surmises as what ultimately led to the Dynasty’s current dilemma with TEC’s license application.”

The delegation also cited Rep. Edwin Aldan (Ind-Tinian), who has also questioned whether the members of TCGCC can remain impartial in reviewing the investigative findings, when the commission has continuously publicly chastised the applicants in the review process.

“I understand that the commission is feeling the pressure from the community given the impact of the Dynasty’s casino operation’s closure. However, while the process is ongoing, it is not right to come out and to start pointing fingers like what they are doing,” Aldan said.

The Tinian Legislative Delegation and San Nicolas have been requesting HKE to keep the hotel operations open until such time a determination has been made on TEC’s casino license application.

“At this point, all I can do for the people is ask HKE, and ask again, to keep their doors open, at least until TCGCC has made a decision on TEC’s license,” San Nicolas said.