CCC: We responded to Bloomberg writer

The Commonwealth Casino Commission did respond to a magazine’s request for comments, but it now says its comments were not included in the published story.

According to Edward Deleon Guerrero, commission executive director, the commission responded “right away” to Bloomberg Businessweek’s request for comments on points noted in their Feb. 15, 2018, article, “A Chinese Casino Has Conquered a Piece of America.”

Deleon Guerrero provided Saipan Tribune with a copy of their response to the magazine, which the commission claims clarifies several points in the story.

In response to the massive gambling operation on a per-table basis cited by Imperial Pacific International (CNMI) LLC, the commission pointed out that the numbers were true, despite questions raised by casino industry veterans.

“The [commission] has a full-time audit and compliance division that review the daily rolling transactions. The reported gaming activities, and more specifically, the ‘rolling volume,’ are true figures,” the commission noted.

The commission noted that possible factors that contribute to the high numbers include IPI’s history as a large junket operator in Macau.

“[IPI has] a very strong network in the VIP market. Due to strong ties to VIP patrons, the volume and the process of credit issuance have been quite large and patron-friendly. China’s anti-corruption campaign has diversified VIP patrons to a new place around Asia-Pacific region such as Saipan, [while the] visa waiver program available for Chinese players has eased their trips into Saipan.”

The article noted the familial relationships of Deleon Guerrero and Torres by emphasizing that Deleon Guerrero was Torres’ uncle, while Torres’ former chief of staff and current executive adviser to the governor is Deleon Guerrero’s son, Matt.

The commission clarified that while the relationships existed, the executive director was hired prior to Torres becoming governor.

“All of the current members of the commission are not appointees of Gov. Torres,” clarified the commission.

The commissioners were appointed by late governor Eloy S. Inos. In late 2015, Inos passed away and then lieutenant governor Torres became governor.

The article said that, despite being opposed by the Development Plan Advisory Committee report submitted to Gov. Ralph DLG Torres in May 2017, the casino still opened.

To this, the commission explained that they met with several government agencies, which included the Department of Public Works, the Commonwealth Zoning Office, the Bureau of Environmental and Coastal Quality, the Department of Public Safety, the Department of Fire and Emergency Medical Services, the Department of Labor, the Department of Commerce’s Alcohol, Beverage, and Tobacco Control Division and Registrar of Corporation, the Department of Health’s Bureau of Environmental Health, the Department of Finance’s Division of Revenue and Taxation, the Commonwealth Utilities Corp., the Office of the Governor, and other government permitting and regulatory agencies and departments as well as IPI.

“The CCC met separately with the DPW Building Code personnel and with the IPI contracted structural engineers working on the hotel and casino project to discuss safety issues and building code requirements. The structural engineering inspectors assured the CCC that the rumors of unsafe conditions at the Imperial Pacific Resort were without merit and that the IPR building is structurally safe and sound,” wrote the commission, adding that the same engineers further assured the commission that the building was being built “above and beyond standards.”

“The CCC required IPI to secure all required licenses and permits…prior to allowing IPI to go live with its casino gaming operations, including securing the conditional building occupancy permit from DPW,” the commission added.

The story pointed out that IPI has made several payments to the Torres Brothers law firm, which reportedly totaled to $18,000 per month in seven of the first eight months of 2017.

In response, the commission said that they were aware of the transactions from the monthly vendor listing, which was a requirement of the commission.

“The CCC was informed that the services provided by the said law firm are for non-gaming legal matters. Further, the CCC’s non-gaming vendor licensing requirements exempts attorneys providing legal services,” the commission noted, adding that the Commonwealth Supreme Court regulates attorneys who practice law.

In a brief phone call with commissioner vice chair Joseph Reyes, he confirmed with Saipan Tribune that the commission is still in talks whether to pursue legal actions against Bloomberg.

He said the commission has yet to “come out with a position” on the issue and has yet to meet to discuss their next move. The commission met last Thursday.

Commission chair Juan Sablan earlier flatly denied the allegations made in the article, which included corruption, money laundering, and several others against Gov. Ralph DLG Torres, the casino commission, and Imperial Pacific.

IPI is going to pursue legal actions against the magazine on the grounds of defamation.