Trouble for Imperial Pacific

U.S. Labor Secretary Thomas E. Perez (l.) has asked the federal government to issue a warrant to inspect the Imperial Pacific Resort construction project on the island of Saipan in association with the alleged death of a worker.

Worker protests, contractor lawsuit

Imperial Pacific International Ltd., the Hong Kong-listed developer building a $550 million integrated resort on the U.S.-controlled island of Saipan, is under investigation in association with the reported death of a construction worker at the site, according to the Saipan Tribune.

U.S. Labor Secretary Thomas E. Perez asked for a warrant to inspect the Garapan property after an Occupational Safety and Health Administration was denied entry. In addition to the alleged death, OSHA wants to learn about other accidents that reportedly caused serious injuries.

After a district court granted Perez’s request, construction contractor MCC International Saipan Ltd. Co. filed an emergency motion to quash the warrant.

Meanwhile, more than 50 Chinese workers staged a protest at the site of the Imperial Pacific Resort, demanding that subcontractor Sino Great Wall International Engineering pay them for their work. They say they have been unpaid for months.

In response, International Pacific issued a statement saying the protest “involves a dispute between Sino Great Wall and its employees. Ongoing construction of the multimillion-dollar facility is not affected and will continue as scheduled. IPI is hopeful that the parties will resolve the dispute amicably and in a timely manner.”

U.S. attorney James J. Benedetto said the initial investigation was prompted by a doctor’s report that serious injuries—including two amputations—had occurred and were occurring on a regular basis. Benedetto said MCC International Saipan reported to OSHA that an onsite worker had a heart attack and died at the beginning of December.

In more trouble for Imperial Pacific, RNV Construction has filed a lawsuit in Superior Court against the company for unpaid construction fees of more than $1.6 million. Those fees are related to the construction of the temporary Best Sunshine Live casino and personnel training center. RNV contends that Imperial Pacific demanded multiple changes as the project neared completion, and did not pay for those changes.

Imperial Pacific released a statement saying RNV Construction, “the local company that was chosen to construct Best Sunshine Live, has been substantially paid by Imperial Pacific International but has breached its contract.” It filed a counterclaim, saying the amount RNV hopes to collect “does not represent what was agreed upon.”