Bill lifting ban on casino employment for lawmakers’ kin opposed

The Office of the Public Auditor and the Office of the Attorney General are opposing House Bill 19-195 or an act that would repeal a provision on Public Law 18-43 that prevents relatives of members of the 18th CNMI Legislature from being employed by a casino on Saipan.

Attorney General Edward Manibusan, however, is recommending that the 19th Legislature would consider removing the five-year sunset deadline. Best Sunshine International, Ltd. was granted the lone license of operating a casino on Saipan.

Section 216 of PL 18-43 states that “members of the 18th CNMI Legislature and their immediate family as defined in 1 CMC 8503 (h) shall not be paid or receive any financial consideration nor shall they be retained as independent contractors or employed directly or indirectly by any casino licensed under Public Law 18-38 in its current form or as amended, or by said casino’s affiliates or agents, for a period of five (5) years beginning from the date of the issuance of said casino’s license.”

Public auditor Michael Pai, in a letter addressed to House Judiciary and Governmental Operations chair Rep. Glenn L. Maratita (R-Rota), is recommending that members of the 18th Legislature, who are also in the 19th Legislature, should abstain from voting on the bill. Rep. Antonio P. Sablan (Ind-Saipan) introduced HB 19-195.

“[The] OPA recommends against passage of the current bill [HB 19-195], and in the event it is called to a vote, OPA recommends members of the 18th Legislature, currently on the 19th, to abstain from debate and vote on the measure,” said Pai.

He said that Section 1 of HB 19-195 raises concerns regarding the Government Ethics Act. “The HS1 form eliminates potential conflict of interest issues regarding the use of public position for personal benefit but continues to have issues regarding the use of a public position to obtain private benefits for relatives.”

Section 8532 (a) of the Ethics Act prevents public officials from using their capacity and position to obtain private financial gain, contract, employment, license or other personal or private advantage, direct or indirect for themselves and or for their relatives.

Pai said any member of the 18th Legislature, and incumbent on the 19th, who voted on HS1 of HB 19-195 would be in jeopardy if any of their relative would seek or obtain employment with the license holder.

“The 18th Legislature passed PL 18-56 with employment restrictions on themselves and their families, and removal of any part of that restriction would be providing a potential gain of employment to those people previously restricted,” said Pai.

Pai added the five-year ban was included by members of the 18th Legislature to dispel the taint of the vote on future employment of their family members. He said that 18th Legislature members had a valid reason to insert a five-year ban of employment on themselves and their relatives.

“Any previous member of the 18th Legislature, now a member of the 19th, voting for the removal of restriction whose family member obtained employment with the license holder could be construed as using their public position to obtain a potential private benefit for their family.”

AG’s recommendation

Manibusan, in a separate letter, also issued his opposition since the restriction “serves an important public purpose of protecting the legislative process from undue influence and erosion of public confidence in the lawmaking process.”

However, he suggested that legislators could remove the five-year ban. “Rather than removing immediate relatives from the provision, the Legislature should consider removing the five-year sunset deadline and making it applicable to present and future members of the Legislature and immediate family members.”

Manibusan said the purpose of the restriction is assuring the general public that the 18th Legislature “was not unduly influenced by private casino interests; and to instill public confidence in the legislative process.”

It also gives the assurance to the general public that “members of the 18th Legislature who voted on the measure, and their immediate families, would not benefit financially in any way for approving PL 18-43, as amended by PL 18-56.”

The five-year ban ends in 2019 or five years after Best Sunshine was issued its casino license in 2014. The restriction is now on its second year and it has prevented members of the 19th Legislature, most of them also served in the 18th, and their relatives from being employed—directly or indirectly—by the casino operator.

“The restriction reinforces the Government Ethics Code’s conflict of interest provisions, which prevent a legislator from participating in a decision in which he or she has a pecuniary interest and a legislator from using his position to obtain a private gain,” said Manibusan.