CCC and CLC are frustrated with IPI

Both the Commonwealth Casino Commission and Commonwealth Lottery Commission are frustrated with Imperial Pacific International (CNMI) LLC for its delays in paying its employees and non-payment of services and financial obligations, among other issues, according to CCC board chair Edward Deleon Guerrero.

At the CCC monthly meeting last Wednesday at its office at the Springs Plaza in Gualo Rai, Deleon Guerrero said the CCC has been communicating with the Commonwealth Lottery Commission and that they, too, are frustrated with IPI.

Deleon Guerrero said they don’t want to kill the casino industry as the CNMI’s retirees depend on it. “But for goodness sake…reach out to those making the decisions, they need to know. This is not a game!” he told IPI senior vice president of Public Affairs Tao Xing.

As of yesterday noon, Saipan Tribune learned that IPI has yet to pay the $3 million regulatory fee it owes CCC, which was due last Oct. 1. This is on top of the $15.5 million annual casino license fee that IPI also failed to pay on the due date last Aug. 12, representing Year 6 of the casino license agreement. IPI chief executive officer Donald Browne had asked Gov. Ralph DLG Torres that IPI be allowed to pay in 2029 the $15.5 million casino license fee it owes this year.

At Wednesday’s meeting, IPI finance director Frances Mafnas said they are still working with management on resolving issues with Payroll 20, which covers pay period Sept. 7 to 20. Mafnas is hoping that that payroll issue would be resolved early this week.

To Deleon Guerrero’s question as to which management she is referring to, Mafnas said that Browne and Xing are working with their Hong Kong office and are close on getting the funding for the payroll. “As soon as we confirm the funding, we will release the payroll,” Mafnas said.

When asked why Mafnas is consulting with Browne and Xing, who both have no knowledge about IPI’s financial funding, Mafnas said she communicates with Browne and Xing, and the two officials in turn communicate with their parent company in Hong Kong.

Deleon Guerrero questioned how IPI director Zheng Dong Ting and Browne make decisions on financial matters when they have no knowledge about IPI’s financial situation or who’s providing the funding. Xing reiterated that they are working with their Hong Kong office about the funding.

Deleon Guerrero said IPI seems to have forgotten CCC’s order that requires the IPI’s board in Hong Kong to appoint a CEO and empower that CEO to make decisions on Saipan.

“How can you make decisions when you have no idea where the money comes from?” Deleon Guerrero asked.

Despite Xing saying that they know where the money is coming from, Deleon Guerrero said that Xing, Browne, and Mafnas are sitting helplessly here, waiting for some entity in Hong Kong.

The chairman pointed out that somebody here that is appointed and empowered as the CEO must make decisions and understand where IPI is financially.

“Otherwise, if you don’t have the knowledge, are you [going to] obligate IPI to pay half of the $50 million before the Lottery Commission when your words are hollow?” Deleon Guerrero asked.

Deleon Guerrero said he is frustrated because he believes that Mafnas should not be put in a position where she has to tell the parent company in Hong Kong to honor its obligations.

He said they just want to make sure as part of their regulatory function that IPI, the casino licensee, is financially stable. “We have an obligation to make sure that you are, that we monitor and then you maintain financial stability,” the chairman added.

About 40 former employees of IPI held a peaceful protest against IPI in front of the CCC office last Wednesday for allegedly not paying the three-fourths that is guaranteed in their contract and other issues.