Response to IPI statement of its past due debt to USA Fanter

USA Fanter strongly denies all falsehoods alleged by the IPI statement—false reports, forged project quantity numbers, increased units of materials used and prices, and double accrued charges. Ridiculous!

USA Fanter has been in the business as a general contractor since 1992 and has never been accused of lying, falsifying reports, not paying their employees, not paying their bills, or had their offices raided by the FBI.

USA Fanter is a duly licensed casino non-gaming vendor.

A good business reputation means everything, especially in a small community like the CNMI. IPI can be assured that USA Fanter will protect itself and its reputation to the fullest extent allowed by law.

With respect to this project, the facts are as follows:

1. On May 27, 2019, IPI prepared the solicitation for the required construction work requiring labor, materials, equipment, and installation;

2. IPI chose USA Fanter’s proposal among other submitted proposals;

3. IPI prepared the proposed Contract;

4. On June 24, 2019, after negotiating the final terms of the contract, IPI and USA Fanter executed the IPI-prepared contract;

5. IPI reviewed and approved all USA Fanter billings over the progress completion period of June 24, 2019 to Sept. 24, 2019. USA Fanter had transmitted six billings—an initial billing for a down payment and followed by five work progress billings.

6. The IPI project site engineer, in an email dated Sept. 27, 2019, approved the fifth work progress billing with the following message:

“I’ve no adverse comments with your revised (progress) billing No. 5 Please submit work done invoice formally for our proceed payment application accordingly/ Thanks.”

What did the IPI site engineer approve? A progress completion of 41.1%, totaling $2.39 million of the total contract of $5.8 million.

7. IPI paid only $300,000 in August 2019 after a threatened notice-of-work stoppage was issued on Aug. 20, 2019.

USA Fanter is willing to negotiate a duly executed contract (that they themselves prepared and with required work-in-progress) with the obvious intent to force USA Fanter to discount their billings and settle for much less than what was contracted.

USA Fanter has engaged the services of an attorney for collection.

Doing business with IPI, the exclusive casino licensee, should NOT be a risk.

The regulatory process is supposed to equally protect IPI, the CNMI, and vendors for their respective interests. Something has gone horribly wrong and, sadly, local vendors are being victimized.

Guocao Qian
President, USA Fanter