Manglona to IPI: Work with gov’t investigators on ‘spilling beans’

Sen. Paul A. Manglona (Ind-Rota) is urging Imperial Pacific International (CNMI) LLC to work with government investigators on its alleged plan to “spill the beans” regarding transactions and relationships with certain CNMI officials.

In a letter Tuesday addressed to then-IPI chief executive officer Ray N. Yumul, Manglona said that, being an advocate of transparency in government, they welcome any and all information IPI is able to provide with, especially about the Community Benefit Fund.

Yumul resigned as IPI CEO that same day, Tuesday.

Yumul had earlier stated that IPI is ready to provide information about political influence committed by local politicians to snag sweetheart contracts, land leases, and contributions from IPI.

Manglona

Manglona said the CNMI as whole will benefit tremendously with the “beans” that IPI will provide.

The senator asked IPI to work in coordination with the appropriate government agencies with this information.

“We are being pressured by members of the public to do something about the numerous allegations of misuse of public funds and corruption in our government,” he said.

Manglona said IPI’s information provided to government investigators will only result in improved government transparency and greater public confidence in the government’s process of coming up with a recommendation for the casino project that are justifiable and, more importantly, will be of benefit to the people of the CNMI.

Under the casino license agreement, IPI is supposed to contribute annually to the CNMI $20 million, called a Community Benefit Fund, that will be used for community benefit programs.

Manglona said the Community Benefit Fund monies are not deposited into the General Fund and, pursuant to Section 16 of the casino license agreement, the governor has control over the use of the funds as his consultation is required for the disbursement of any money to the community benefit programs.

He said the intended uses of the Community Benefit Fund monies are for programs such as education, scholarships, infrastructure, health care, and employee retirement benefits.

Since the issuance of IPI’s exclusive casino license, Manglona has been requesting for an audit on the use and expenditures of the Community Benefit Fund or an official report on disbursement, if any.

The senator said that, pursuant to the casino license agreement, IPI should have available or deposited in the Community Benefit Fund a total of $60 million as of Oct. 1, 2020, which includes the 2018, 2019, and 2020 contributions.

“To date, we are informed that only approximately $3 million was paid by IPI, leaving an unpaid balance of $57 million,” he said.

Manglona said they have not received any information or report from IPI, the governor, or the Office of Public Auditor regarding the exact amount and all disbursement of funds that have been paid to the Community Benefit Fund.