Sablan urges IPI’s chief to release CBF records

Tina Sablan

Rep. Tina Sablan (Ind-Saipan) has met with Imperial Pacific International Holdings Ltd. chairwoman and executive director Cui Li Jie, during which she asked Cui to consider releasing the records of how the Community Benefit Fund money has been distributed.

Sablan disclosed Wednesday that Cui, speaking through an interpreter, stated she would consult with Imperial Pacific International (CNMI) LLC’s legal counsel to see if there would be any issues with disclosure.

IPI’s mother company is the Hong Kong-based Imperial Pacific International Holdings Ltd.

Sablan discussed how she brought up the Community Benefit Fund issue with Cui in response to Saipan Tribune’s inquiry about their meeting.

She said the meeting happened over lunch Tuesday at a small Chinese restaurant in Garapan. Sablan said she paid for her share of the meal.

The lawmaker recounted that at last week’s joint hearing of the House and Senate gaming committees and the Commonwealth Casino Commission, she requested that IPI representatives who were present in the gallery be invited to provide testimony and answer some questions that that CCC members were not able to answer as they were bound by legal restrictions.

Cui Li Jie

She said these individuals were not willing to speak with lawmakers that day, however. One of the IPI representatives, a certain Mr. Su Hongtao, told her during recess that he was not actually authorized to speak on behalf of IPI.

Sablan said Su stated that he did not have any formal position with IPI, and had other investments in the CNMI that he offered to share information with her about. Sablan said Su invited her to meet with him at a later time, to which she agreed.

She said that during her meeting with Su Tuesday at a restaurant in Garapan, Su, speaking through a translator, shared his development plans for the former La Fiesta Mall and Plumeria Resort properties.

“I mostly listened, though I was able to ask a few questions about his projects and also about his role with IPI,” the lawmaker said.

About halfway through lunch, Su told her that he had also invited Cui and that she would be joining them shortly.

“I was frankly surprised, but also curious. I had never met the chairwoman before,” she said.

Sablan said Su left for another meeting not long after Cui arrived.

Sablan said Cui, through an interpreter, described some of the many financial and legal challenges that IPI is facing. The lawmaker said she discussed with Cui in particular IPI’s compliance with the Community Benefit Fund requirements in the casino license agreement.

Sablan said Cui was aware that CCC executive director Charlie Atalig had filed a complaint against IPI related to the CBF violations.

Sablan said she learned then that IPI is disputing its CBF obligations and is now in communication with the Lottery Commission to negotiate another amendment to the casino license agreement.

She said she noted to Cui that members of the Legislature have asked CCC to disclose how CBF funds have been distributed since 2018, but that IPI management has refused to authorize the CCC to release those records to them. Sablan said she told Cui it would be in everyone’s interest to be transparent about the use of those funds.

When asked if the meeting with Cui and Su changed her view of IPI, Sablan replied, “Not really.”

The lawmaker said she appreciated the time that Cui and Su gave her to share their perspectives on IPI’s mounting financial and legal troubles, and their frustrations with the government and business climate in the CNMI.

“I hadn’t had a chance to hear them out like that before. I will say, the frustrations go both ways,” she said.

Sablan said her concerns about IPI’s future financial viability and compliance with the casino license agreement and the laws of the CNMI still remain. She said she is glad that CCC has finally initiated the process of examining IPI’s financial suitability.

“IPI has a right to due process. The CNMI, also, has a right to expect that the exclusive casino licensee will follow the law and honor all its obligations,” Sablan pointed out.

Earlier this week, Sablan stated that Atalig’s complaint against IPI for allegedly failing to contribute $40 million in CBF money in 2018 and 2019 only affirms the facts that they have known for some time that IPI has indeed violated the casino license agreement.

Sablan said Atalig’s complaint also affirms that the Commonwealth is unable to account for more than $30 million in CBF monies that IPI should have distributed for public purposes.