Propst appeals to CCC to ensure that IPI pays

Rep. Edwin K. Propst (Ind-Saipan) appealed Thursday to the Commonwealth Casino Commission to ensure that Imperial Pacific International (CNMI) LLC pay the CNMI government $18 million in developer’s infrastructure tax, $37 million in community benefit fund, and millions of dollars more to its vendors and former contractors.

“I beg you. You guys have the power. And I believe in you. So please ensure that IPI is paying their bills and paying their vendors,” said Propst during the public comment portion of the CCC’s board meeting at the Springs Plaza in Gualo Rai.

Propst also expects IPI to be given another extension to complete its casino/resort project in Garapan.

He also questioned why IPI has not been required to pay a developer’s infrastructure tax, considering that one of his colleagues in the Legislature has introduced a bill to fund basic infrastructure like lighting on the streets in villages. Propst questioned the need for such funding when there is an $18 million or more that the government should be collecting from IPI in developer’s infrastructure tax.

Developer’s tax is 2% of a project’s cost.

Propst said it is within the CCC commissioners’ power and purview to ensure that this developer’s infrastructure tax is paid so that the Department of Public Works can have the necessary funding.

“I don’t want to be here to be the bad guy, or blast IPI. I’m not here for that. I’m here because I care,” said Propst, adding that he is a member of the House’s Gaming Committee chaired by Rep. Ralph Yumul (R-Saipan).

Propst said one of the most frustrating things is that Yumul sent a letter to CCC a couple of months ago, requesting for information on the community benefit fund, but that the response was that it’s still under investigation.

“We have an obligation to find this out. And if you need to, move for executive committee to discuss this and we’re okay with that. But we are in this position for a reason,” he said, adding that the House does not want to be forced to use its subpoena powers just to get the information.

Propst said IPI is contractually obligated to pay the community benefit fund, yet $37 million of that is unaccounted for.

He said it is frustrating as some people are still living in tents.

“Here, we have the IPI having numerous consultants who, as far as we know, don’t have any deliverables. I’d like to see the deliverables,” Propst said, pointing out that these consultants have been paid regularly, but not the contractors.

He said if not paid, these vendors suffer and will have to lay off their employees. “It’s only fair that they get paid,” Propst said.

At the same Thursday’s meeting, representatives of many vendors and former IPI contractors accused IPI of engaging in a pattern of practice of breaching contracts and dishonoring obligations. IPI allegedly owes them a total of $35 million. Many of the cases are undergoing court litigations.