Complete date extended again to 2021
Saipan lawmakers have extended the deadline for completion of the Imperial Pacific International resort on the island until February 2021, according to reports.
The most recent deadline for the resort’s completion was August 31. Claiming a lack of qualified workers, IPI said it could not meet the deadline and submitted a proposal for extension to February 2021. The resort is the sole casino resort in the U.S.-controlled Commonwealth of the Northern Mariana Islands. But in light of multiple missed deadlines, violations of labor laws, IPI’s failure to make payroll on time, and a precipitous drop in profitability, that monopoly may not last.
IPI wrote off nearly $750 million in uncollectable VIP gaming debts in the first half of 2018 (the debts were reportedly incurred by just 10 VIP clients). On August 31, IPI released its financial report for the six months ending June 30, during which the company’s revenue fell 51 percent year-on-year to HK$2.2 billion (US$281.6 million). Earnings fell 72.2 percent to HK$450.5 million and profits toppled 91.3 percent to HK$79 million.
According to a report on CalvinAyre.com, IPI claimed its write-offs were “comparable and in line with global industry standard.”
According to Marianas Variety, the chairman of the House Committee on Gaming is set to meet with Commonwealth Casino Commissioners to discuss IPI’s recent profit advisory warning for the six months that ended on June 30. Rep. Joseph Deleon Guerrero said, “I think it’s high time that we bring the issue to the table for discussion. We will be meeting with the casino commission and find out what IPI’s status is. I also read reports about nonpayment of vendors and so forth so it’s a concern.”
Rep. Edwin K. Propst is urging his fellow lawmakers to end the monopoly enjoyed by IPI. Speaking to the Saipan Tribune, Propst said, “There’s only one licensee. Perhaps we should revisit that and allow other casinos to compete. Competition is good. It’s one thing if there were competitors and one was not doing well, while the other is thriving. But that’s not the case here. The frustration is that because if there’s only one license, if it fails, the entire casino industry fails.
“The CNMI government must renegotiate its terms to include at the very least a completion or performance bond to ensure the casino hotel overlooking Garapan will be completed, even if IPI decides to leave or suspend their business operations,” he said.
Meanwhile, Viola Alepuyo, IPI’s senior vice president for special projects, said the company is happy the extension has been granted; it comes with a $5,000-per-day fine if the latest timeline is not met. “We are very happy that we got extended. We are very honored and humbled by the outpouring of support from the people. IPI and its employees really work hard and we do follow the rules and laws. Yes, there are some bad actors and I can’t speak for the bad actors but the employees of IPI work very hard and we are all law-abiding citizens.”
Among those who spoke up for IPI at public hearings was Bertita Camacho John, a retiree, who said IPI’s investment in the economy has allowed retirees like her to receive their pension in full. “Before, I was receiving only 75 percent of my pension. Now, it is now 100 percent because IPI contributed the 25 percent. Our islands were in so much debt and struggling when the garment factory left.
“There were austerity measures and government employees did not have salary increases,” she said. “Now, that’s no more. Be mindful of that.”
