The Commonwealth Casino Commission board approved yesterday an order requiring casino licensee Imperial Pacific International (CNMI) LLC to settle the uncontested amounts it owes its vendors.<\/p>\n
CCC board chair Juan M. Sablan and other commissioners adopted the order despite the criticism of some vendors in a previous meeting that the draft order has no teeth since it does not mention any penalty against IPI.<\/p>\n
Sablan asked the commissioners to \u201cgo ahead\u201d and vote on the order after listening to the advice of CCC legal counsel Mike Ernest not to change the draft. Ernest said the order has teeth but that the vendors don\u2019t fully understand it.<\/p>\n
When asked for comments about CCC\u2019s order, Phillip J. Tydingco, who appeared for IPI general counsel Joey Patrick San Nicolas and on behalf of IPI, said they are going to take back the order and study it.<\/p>\n
\u201c[It will] obviously have an impact, so we\u2019ll talk [that] over with our management and our parent company. That\u2019s all I can say about it,\u201d Tydingco said.<\/p>\n
With respect to some vendors\u2019 complaint about IPI not paying for some services, Tydingco said IPI is \u201cvery sympathetic\u201d to the concerns of the vendors. He quoted IPI chief financial officer Ed Chen as stating at yesterday\u2019s meeting that he wants to work out the payment issue with most of the vendors.<\/p>\n
\u201cThat\u2019s his [Chen] statement,\u201d Tydingco said.<\/p>\n
CCC adopted the order after many vendors publicly complained at some of the commission\u2019s meetings that IPI has not paid them for their services.<\/p>\n
CCC said this calls into question IPI\u2019s willingness or ability to comply with its contractual, regulatory, or statutory obligations.<\/p>\n
Last Dec. 19, representatives of many vendors and former IPI contractors who are allegedly collectively owed $35 million, jointly appealed to CCC to take action against IPI, whom they accused of engaging in a pattern and practice of breaching contracts and dishonoring obligations to licensed professionals in the CNMI. <\/p>\n
In the order that was approved yesterday, Sablan said the commission deems it necessary and proper to require IPI to \u201csettle any outstanding obligations owed by contract, license agreement, regulation, statute, or otherwise which are 90 days or most past due.\u201d<\/p>\n
CCC ordered IPI to settle in full within 30 days from yesterday any uncontested account payable with a licensed vendor or private entity which is 90 days or more due.<\/p>\n
CCC further ordered that, no later than 30 days from yesterday, the IPI chairman or its highest ranking executive, and chief financial officer, must each, in writing, certify that IPI is solvent.<\/p>\n
CCC ordered the IPI chairman, or its ranking executive, and CFO, to certify that IPI has the ability to pay debts as they mature and become due, and that IPI has paid all such debts within 90 days of their accrual.<\/p>\n
CCC ordered them to certify that IPI has the ability to pay to private entities all payments required by contract, and IPI has the no such uncontested payables 90 days or older.<\/p>\n
CCC also ordered them to certify that IPI has the ability to fully build the entire gaming facility in Garapan.<\/p>\n
CCC further ordered that if the IPI chairman and CFO cannot make some sort or all of the required certifications, they must explain in writing their inability to so certify and provide an explanation why the certification cannot be made, and outline the steps IPI will take to ensure that the required certifications can be made.<\/p>\n
During the meeting\u2019s public comments portion, Antonio Mu\u00f1a, consultant of USA Fanter Corp. Ltd., briefly explained the history of their demands for payment.<\/p>\n
Mu\u00f1a said that due to the lack of response\/interest to resolve the dispute by way of dispute resolution provisions and\/or for mediation, USA Fanter has instructed its legal counsel to sue IPI to collect the unpaid billing.<\/p>\n
Mu\u00f1a said the CCC order needs teeth as it\u2019s all bark. \u201cThere has to be a penalty,\u201d he said.<\/p>\n
Mu\u00f1a said IPI is not a sinking ship without a captain but a ship without a rudder.<\/p>\n
Former Commonwealth Zoning board chair Diego C. Blanco said that he read in the newspaper a few weeks ago IPI\u2019s statement that it has paid all local vendors with outstanding amounts between $20,000 to $300,000.<\/p>\n
\u201cAs you can see, people are coming asking for help and get paid,\u201d said Blanco, who introduced himself as a concerned citizen.<\/p>\n
Blanco said the vendors need CCC\u2019s help for them to get paid by IPI. \u201cIt\u2019s a shame that we allow this company to continue this kind of practice. What is the commission for? Please help us,\u201d Blanco said.<\/p>\n
Pacific Rim Land Development manager and owner Keith J. Stewart said he hopes that CCC puts more teeth into its order against IPI.<\/p>\n
Stewart said they are extremely patient with their demands for payment from IPI. \u201cBut at some point, enough is enough. Move on,\u201d Stewart said.<\/p>\n
Dr. Ken Shankweiler, a project consultant for J.M. Aquino PC, agreed that the commission has to put some teeth into its order. \u201cSomeone has to put a hammer now. It\u2019s as simple as that,\u201d he said.<\/p>\n
He said these small vendors have many employees that have families to support and are severely hurt by IPI not meeting its obligations.<\/p>\n
After hearing the vendors\u2019 comments, Sablan assured that the commission now is ready to act.
\nWhen asked for IPI\u2019s comments, Tydingco appealed to the commissioners not to adopt the order.<\/p>\n","protected":false},"excerpt":{"rendered":"
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