Dela Cruz says casino commissioners will be double dipping

House Vice Speaker Francisco Dela Cruz (Ind-Saipan) believes the recently confirmed commissioners of the Saipan Casino Commission will be violating the double dipping prohibition in the CNMI.

Reading from a prepared statement during Friday’s Saipan and Northern Islands Legislative Delegation session at the House of Representatives chamber, Dela Cruz said: “We all know there’s a general prohibition on retirees double dipping. This prohibition applies to retirees who are getting both their pension and a CNMI paycheck at the same time. Now we all know there are a few exemptions to this general rule for certain occupations and for a certain period of time. Recently the legal definition of employee was amended by the casino law. Specifically the definition of employee was amended to exempt members of the casino commission. The end result of this amendment was apparently to allow double dipping to occur by making commissioners non-employees.”

He said Settlement Fund trustee Joyce C.H. Tang also recently commented that members of the Saipan Casino Commission, who would make approximately $40,000 in the first year and then $20 per year after the first year, are considered CNMI government employees due to their substantial salaries and work.

“So we have the administrator telling us very clearly that the effect of this salary and work volume would be to make the members of the commission employees. Whatever label we give the commissioners, the administrator will deem them as employees. She is prepared to go court to clear this matter up because of the ramifications and to avoid what she believes would be double dipping.”

Dela Cruz believes Saipan Casino Commission members will be double dipping regardless of how the Saipan casino law, Public Law 18-56, defines an employee.

“Based on my own understanding of the double dipping concept where you would essentially get paid from two public funds—in this case the Settlement Fund and the public funds generated by the casino revenue—and based on the foregoing it is clear the issue is not settled. Merely amending the definition of employees doesn’t matter. There may be technical definitions in other matters that is overcomplicating the issue. In my opinion, if you collect two checks you are double dipping, and if you’re double dipping I will not support your nominations.”
When asked whether the casino commission is an “instrumentally of the Commonwealth government or not,” House legal counsel John Cool said yes.

Senate floor leader Pete Reyes (Ind-Saipan) said this is an issue the Legislature shouldn’t concern itself with.

“The qualification for a casino commissioner under the law does not call for investigation on double dipping. It has nothing to do with double dipping. If a retiree is appointed and he’s qualified to double dip, let him take it to court. It’s their business, not ours. Our business is to determine based on the law whether an individual that was nominated by the governor is qualified. We’ve satisfied that.”

Reyes seemed more concerned that three months into the passage of the Saipan casino law, there is still no regulation promulgated to regulate the industry.

“I have never met these casino people. I don’t know who they are. But I’m concerned that they’re not being regulated. I think it’s our responsibility to ensure they get regulated,” he said.

Judiciary and Governmental Operations committee chair Rep. Christopher Deleon Guerrero said the Legislature should just support the Saipan casino law rather than politicize the issue or hold on to past grudges.

“It’s not a matter of being a proponent of this casino. No, it’s already into law. That’s the point. We’re obligated to put those policies in place that require the Legislature’s approval with regards to the nominees, that we evaluate them, look into their background, and everything. The committee has come out with the adoption of that report saying that they all meet the requirements so majority of the members have adopted the committee report to confirm. That’s my whole point. It’s been too long already. The law is in place already. Since that law was signed into law, there’s nominations and re-nominations. It has kept on dragging.”

One of the three casino commission appointees, Joseph C. Reyes, said the delegation has made the decision to confirm nominees and everyone must respect that.

“I’m not a lawyer but the Legislature has spoken, so be it. Just hope this thing will not be tied down in some legal matter again because it will further delay providing the outlay, given the magnitude of work that needs to be done. It’s going to interesting.”

Another appointee, Alvaro A. Santos, said he personally consulted with the legal counsel of the Settlement Fund and he told him that Public Law 18-56 already took care of the double dipping controversy.

“Meaning it disqualified us from being an employee of the CNMI government. The same goes for an investment fund and custodian that involves the casino commission. We’re an exception, so to speak.”

Juan M. Sablan, the third confirmed members of the commission, said Dela Cruz has a good point and a very legitimate concern.

“Better to ask the court to render a decision. I read the law and it doesn’t include the casino commission as part of the government. Joyce Tang indeed came out with an opinion but the court has to decide. Hope they can decide the sooner the better.”
Senate floor leader Reyes said the almost glacier-like confirmation of Gov. Eloy S. Inos’ casino commission nominees might have something to do with the upcoming Nov. 4 elections.

“I’m blaming some members who are opposed to every item that has been raised by this administration in the interest of the public because it’s going to make this administration look good. I don’t like that. As far as I’m concerned I don’t care who is the governor. I don’t care whether the governor is Democrat, the governor is Republican, or the governor is independent as long as what the governor is trying to do is good for the public, I support it. I don’t think we should be politicizing the lives of our people. We cannot afford to do that. There’s too much hardship already and to try and frustrate and make this administration fail because of politics is just not right.”