There\u2019s the grand expectation that casino is the panacea\u2014the single answer solves all fiscal ills\u2014in the ballooning bankruptcy of the local government. <\/p>\n
How exciting, though, the net result of a thoughtful probe to figure out the beast: \u201cPay To Play Culture 101!\u201d And the boys are singing, O\u2019 When the Saints! Even I\u2019m tappin\u2019 and snappin\u2019 my fingers to such a sprightly beat.<\/p>\n
Admirable, though, the fuzzy math that casino would serve as the Holy Grail and savior of our financial woes at home. Let\u2019s do a simple review of what\u2019s projected versus the combined debts of the CNMI. It\u2019s an important issue to know and understand so you know that the promised revenue isn\u2019t what the Pay To Play Culture 101 gang blared with their horns recently.<\/p>\n
It is projected that there would be an advance payment (from license fee) of some $30 million. Reportedly, Gov. Eulogio S. Inos would use this sum to pay off the 25-percent cut in pension pay. Gee! Feels good that some goodies would finally be rolling down the hill from atop Mt. \u201cPay To Play Culture 101!\u201d Is this amount sufficient for this purpose or is it short by some $20 million? With a shortfall, how would the 25 percent be paid? Would it be a one-shot deal or divided into two payments until further notice?<\/p>\n
Reality of debts and deficit<\/strong><\/p>\n Peeking into the debts of the CNMI: $236 million in deficit while honing deficit spending, $13 million for DB withdrawal interest, $700 million in unfunded liability of the Fund; $100 million for land compensation; $27 million in judgments against the CNMI; $64 million in CUC debts; $21 million in government utilities; and $200 million plus for the pending pension obligation fund loan. <\/p>\n Total debt is more than $1.270 billion, minus the $30 million for a shortfall of $1.240 billion!<\/p>\n The shortfall highlights the obvious unsustainability of the program beyond 2018 when all Fund investment money is spent. Thus, the obvious myopic shortsightedness in the new law \u201cPay To Play 101\u201d Saipan casino law that zipped by without public participation. <\/p>\n The Fund would be dead by then (2018) while we force current employees to work beyond the age of 65 or take the marriage vow of \u2018til death do us part. A serious dilemma where some $70 million in pension pay would be subtracted from the local economy.<\/p>\n The CNMI\u2019s government debt iceberg is moving albeit invisibly but remains a very dangerous object ahead. Is casino the only reasonable forward looking measure the \u201cPay To Play 101\u201d bunch could work up? Problems conceptualizing other issues in the realm of anchor investments?<\/p>\n Beyond ill-fated glorification<\/strong><\/p>\n The single most damaging aspect of the Saipan casino law is the instant destruction of the CNMI\u2019s reputation as an unstable investment venue.<\/p>\n Mega Stars feels betrayed in deceitful fashion with its planned investments being assured of one thing while policymakers did the complete opposite. Reminds us of Gomer Pyle\u2019s favorite expression, \u201cSurprise, surprise, surprise!\u201d <\/p>\n This wasn\u2019t necessarily a pleasantry given the negativity it would fan on other investors from Japan and Asia. In short, the anticipated instant gratification in instant soba mindset has bitten the CNMI big time in the butt. The firm simply scrapped its plans for the entire CNMI, the price we pay for compromising foresight! We lied to these investors, didn\u2019t we?<\/p>\n As difficult pinning sanity in the wild swing of attitudes and fuzzy sights from upstairs, perhaps this is all part and whole of our favorite discussion known as self-government. There\u2019s the missing component in this debate\u2014the proactive participation of those with some sense of humility and leadership to redirect the future of these isles. If you\u2019re one of them, please say your piece now!<\/p>\n Sizing up regional events<\/strong><\/p>\n For the fully informed, it\u2019s difficult accepting an industry where there are more fully suited financial players nearby. Casino moguls from Las Vegas have eyed and studied what it calls a \u201cripe market\u201d to expand its business. It chose Japan and should have an integrated casino and leisurely industry two years from now. It didn\u2019t choose Saipan!<\/p>\n The 26 million retired and rich players are in Japan, not Saipan. We have our share of players, many of whom won\u2019t squeak through the entrance as food stamps recipients.<\/p>\n Macau has taken a full press court, improving services to lure the top 1 percent of the wealthiest players in the world over. Service includes expensive gifts for spouses of players or players themselves, gifts that would send the CNMI reeling for cover if it chances replicating it. The same is in full focus in Singapore and the Philippines.<\/p>\n The Philippines\u2019 casino industry has gone heavily into family activities, including trips to resorts away from Manila where you could experience real relaxation and service at its best, alone or with your family. It has the family thing instituted and consistently works the clock to improve services. I\u2019ve seen some of these places, perfect venues to frolic in their crystal clear waters and golden sand.<\/p>\n So competition begins to heat up and services refined even before we start our own. It\u2019s an eye opener that makes it imperative that we prevent the inevitable\u2014a casino industry\u2014that we would end up subsidizing because it would be broke or bankrupt before it takes off. <\/p>\n Must focus on forte<\/strong><\/p>\n The State of Aloha has capitalized on its unique culture as an industry over the glitz and glamour of casino. It has done exceedingly well boasting to the world the essence of Polynesia, its people, music, dance, waterfalls, surfing, flora and fauna.<\/p>\n Somehow, the wild beast of disorientation must be domesticated. No one is there to bring it home except \u201cwe the people.\u201d Strong sense of leadership and organization is the lacking component on issues we\u2019ve dismissed with complete abandon until it\u2019s too late to retrieve and revive them. Think about it!<\/p>\n","protected":false},"excerpt":{"rendered":" There\u2019s the grand expectation that casino is the panacea\u2014the single answer solves all fiscal ills\u2014in…<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[171,26,170,67],"class_list":["post-32244","post","type-post","status-publish","format-standard","hentry","category-opinion","tag-asia","tag-cnmi","tag-japan","tag-people"],"_links":{"self":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/32244","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/comments?post=32244"}],"version-history":[{"count":0,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/32244\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/media?parent=32244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/categories?post=32244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/tags?post=32244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}