‘CNMI very much dependent on federal aid now

Due to lack of economic activity because of the COVID-19 pandemic, the CNMI is very much reliant on the federal aid that the CNMI government and the people are getting right now, said House Speaker Blas Jonathan T. Attao (R-Saipan) Wednesday.

Right now, there is no other economic activity in the CNMI since tourism is the Commonwealth’s No. 1 industry, he added.

Attao underscored the Commonwealth’s current situation in relation to Imperial Pacific International (CNMI) LLC’s request to, among other things, be allowed to put off paying the $15.5 million annual casino license fee it owes this year until 2029.

Attao said that hashing out a payment plan for IPI is possible, but he does not think it’s realistic to just remove that requirement because of the CNMI’s current financial situation. Right now, he said, they need to work on sitting down and understanding the process and what IPI’s situation is.

“We also got to be cognizant of the…CNMI’s situation…where obviously everybody is hurting financially,” Attao said.

He said that Tuesday’s meeting in the House of Representatives’ chamber with IPI chief executive officer Donald R. Browne and IPI senior vice president of Public Affairs Tao Xing gave him a broader understanding of why IPI came up with its latest list of proposals in its Aug. 26 letter.

In that letter, Browne accused the CNMI of being in violation of the exclusive license that IPI holds for allowing poker machines and e-gaming to operate outside of the casino.

Attao pointed out that Public Law 18-56, which allowed casino gaming on Saipan, came after Public Law 18-30, which allowed e-gaming in the CNMI, and the poker arcades started back even before the ’90s or probably the ’80s. “So that was my take on the letter. I was very, I was thrown off by the way they wrote their letter about the exclusivity,” Attao said. “In my opinion in reading P.L. 18-56 it is exclusive and the law itself is very specific of the industry. And the license of the industry covers everything that’s in the facility itself.”

As for the $15.5 million that IPI owes this year, Attao said it’s something that the Legislature needs to address. IPI was supposed to pay that casino license fee last Aug. 12 for Year 6 of the Casino License Agreement. Now it wants to pay that amount on the 15th year of the license.

Attao said the members of the 19th, 20th, and 21st Legislatures inherited the casino industry that was agreed to in the 18th Legislature. As members of the 21st Legislature, they walked into agreements that happened before their time.

“But we have to make sure that the success of businesses in the CNMI is there. And they’re able to be successful. Then it’ll hopefully entice other types of businesses to come and invest in the Commonwealth,” he said.