Marianas Stars responds to Best Sunshine’s assets claim

Casino applicant Marianas Stars Entertainment Inc. said yesterday that its parent company’s net assets are “more than five times greater” than those of the parent company of Best Sunshine International Ltd., in response to Best Sunshine’s earlier statement that its finances are better than its competitor. Gov. Eloy S. Inos, meanwhile, reiterated the positive impacts of a minimum $2 billion investment and its multiplier effect on the CNMI economy.

Cario Hon of Marianas Stars said that Chinese Strategic Holdings’ net assets of “HK$790.638 million is more than five times greater than First Natural Foods Holdings’ net assets of HK$145.535 million.”

“The numbers speak for themselves,” Hon said in a statement. “As competent accountants will agree, the best indicator of a company’s financial strength is its net assets.”

At a Lottery Commission meeting on Tuesday, Best Sunshine’s Terence Tay said during public comment that “just in terms of financial capabilities, our company listed on the Hong Kong Stock Exchange has market capitalization of $500 million…I believe our nearest competitor has a market capitalization of 1/15th of ours.”

Hon, in response, said rather than debate the subject, he showed the consolidated statement of financial position from the 2013 annual reports of both First Natural Foods and Chinese Strategic Holdings.

Best Sunshine and Marianas Stars are competing for a license to exclusively develop a minimum $2 billion integrated casino resort on Saipan.

The Lottery Commission, with the help of consultants, has until June 19 to decide whether to grant a license and to whom.

The governor, meanwhile, hopes that a license could be issued “and with that, we can release the $30 million and start the program.”

The $30 million, representing two years of advanced annual license, will be used to restore CNMI retirees’ deferred 25-percent pension and pay the interest on retirement contributions that some government employees withdrew last year.

Inos also hopes that the two lawsuits filed over the Saipan casino law are not meant to “derail” the project.

“And I’m asking these folks and the public, save for any technical legal issues that may be involved, I’d like to see this project given a chance so they can work. Because in the end, it’s going to benefit the majority of the people within the community and not just Saipan, Rota but Tinian as well, and not just retirees but other members of the community,” he said, adding that utility rates are also expected to go down because LEAC will be subsidized in part by funds from the casino industry.

Inos reiterated that if the ongoing application process is shot down, the CNMI would be seen as not a business-friendly place.

“But again, you can’t stop these people from filing any kind of lawsuit,” he said, but still hoping that those behind the lawsuits will also consider helping the greater majority of the CNMI people.

When asked if there’s a backup plan, especially if and when the second lawsuit over violation of the Open Government Act succeeds, the governor said it may be the reintroduction of a new bill.

“It’s a gamble. We may not be able to get this kind of approval next time around,” he added.