‘Show us the money’

The Saipan & Northern Islands Legislative Delegation confirmed yesterday three new members of the Commonwealth Casino Commission, urging them to give the panel teeth and get Imperial Pacific International (CNMI) LLC to pay its obligations and make money come to the CNMI.

The three casino commissioners are former CCC executive director Edward C. Deleon Guerrero, former House speaker Rafael S. Demapan, and former Zoning board chair Mariano Taitano.

Prior to their confirmation, several lawmakers reiterated the need for the commissioners to have a full understanding of the casino industry, to have the highest level of transparency, and to get IPI to fulfill its commitment and obligations.

Rep. Tina Sablan (Ind-Saipan) gave the strongest opposition to the confirmation. According to her, Demapan, as a lawmaker, accepted items of value from casino investors, including all-expense-paid trips to Asia in 2013—a violation of the Ethics Act.

Sablan also questioned all that have transpired with IPI under Deleon Guerrero’s watch as CCC executive director, which include labor violations, documented workplace injuries, environmental violations, and chronic failure to pay vendors, timely remittance of taxes, and endowing the community benefit fund.

As for Taitano, Sablan said that he, as a former lawmaker, co-sponsored the Saipan Casino Act that established the monopoly license, and an exemption from gaming taxes. Sablan said this made the CNMI the only place in the world with a casino industry with no gaming taxes.

“Based on IPI’s record of chronic, flagrant, and continuing lack of respect for our laws and the license these past six years, based on the apparent failures of our government to effectively regulate, and based on serious doubts about the viability of this company and this industry [on] our islands, I think a time of reckoning is upon us. …IPI is a bad actor,” Sablan added.

While not as strongly opposed as Sablan, Rep. Joseph Lee Pan Guerrero (R-Saipan) cautioned the commissioners, and stressed that he wants to see that changes can be done.

“We need to see new money come in, especially on this casino. They need to pay out their obligation,” Guerrero said. He specifically wants the commissioners to rectify the problems, the issues, and concerns of the community regarding the community benefit fund.

“We need to account for that. We want to know how it was spent. …Figure out this issue, report back to the local delegation. …Feed us with information that we want to hear…meaning accountability because that’s what we need to share with the community,” he added.

Guerrero said that CCC has to get IPI to show proof that it has paid its obligations and not hide behind confidentiality.

In a separate interview, Gov. Ralph DLG Torres, who nominated all three, thanked the delegation for the opportunity given for the three board members through the entire process.

“These are challenging times and they [commissioners] do play a great role. …They need to make sure that they [casino licensee] follow all the rules and regulations,” he added.

The three new commissioners will each serve four-year terms that will expire on April 2024.