‘Going after IPI’s obligations is like chasing a butterfly in a huge field’

As he describes it, going after what Imperial Pacific International (CNMI) LLC owes the CNMI government and the Commonwealth Casino Commission is like chasing a butterfly in a huge field. “How are we ever [going to] catch up to this?”

Thus asked Gov. Arnold I. Palacios in an interview yesterday, adding that CCC and IPI already went to the CNMI Superior and U.S. District courts, all the way up to the U.S. Court of Appeals for the Ninth Circuit.

“They are taking us on a wild goose chase on this and when is it going to end? We need to end it and move on,” said the governor.

IPI recently made an offer to the CCC board to pay $5 million a year for four years to the CNMI government for the casino license fee and $1 million per year for four years to the CCC for its regulatory fee, in exchange for getting back its suspended casino license.

When asked to comment on IPI’s offer, Palacios disclosed yesterday that IPI also wrote him about its offer on probably the belief that he has the sole discretion to make a decision on it.

“I don’t have [that authority]. We have the CCC that’s been handling this case and the attorney general. And it’s been in courts,” said Palacios as he discussed the background of the court actions between IPI and CCC.

He said the CNMI court decision was for CCC and IPI to sit down and come up with a reasonable settlement payment schedule.

Palacios said the CCC advised or informed him that the CCC submitted to IPI a counteroffer that it first pay $15 million upfront so that the current 2023 casino license fee is paid, and then IPI would have to pay $5 million a year up to 2032.

“And that’s the position of the commission,” he said.

Palacios said they didn’t hear anything back from IPI until very recently when IPI sent him a letter also offering $5 million a year but it’s now until 2052 to pay and not 2032.

The governor said he wants to make it clear that it is in the hands of the commission to negotiate that settlement upon the court’s instruction.

In his opinion, Palacios believes the annual payment for a casino license fee under the agreement and under the law or the statute is an exclusive license at $15 million.

“That’s the law. Even if they want to take a look at different options, the commission is already mandated. They can’t change the law,” he pointed out.

Only the Legislature can change the law, Palacios said, and they cannot make the law retroactive.

Palacios also disclosed that he was just informed that IPI has already hired another lawyer from the U.S. mainland to appeal the Ninth Circuit’s decision to the U.S. Supreme Court.

The governor said he will listen to what the AG and the CCC will say as they’re the body created to look at all these issues and make recommendation or a decision.

“I cannot unilaterally make that decision. It is not the governor’s decision,” he said.

Palacios believes that if IPI is serious about its intentions, it should just make the current payment for the annual license fee if they want to operate again.

The other global negotiations on a settlement have to be hammered out with the commission later, he added.

Gov. Arnold I. Palacios