Imperial Pacific International Faces a Fine of $62 million and Potential Loss of Exclusivity for Saipan Casino License
The tight hold that Imperial Pacific International (IPI) has on exclusive casinos in Saipan is fading away as it prepares to face a mammoth $62 million penalty.
The Commonwealth Casino Commission (CCC) announced a 30-day ultimatum to IPI, spurred by the company's inability to fulfill their financial obligations, as reported by the Marianas Variety. This penalty includes the $15.5 million annually owed by IPI between 2020 and 2023, with not a cent of it paid thus far.
As a consequence of these unmet financial demands, the CCC is determined to remove IPI's exclusivity rights in Saipan. If the fee is not settled within the specified time frame, the CCC is ready to withdraw the exclusivity they've provided IPI.
Possible Solutions
In response to the rigid deadline, IPI’s director, How Yo Chi, voiced his objections. How claimed that 30 days is an unrealistic period for the company to meet such a significant monetary requirement. Things just got trickier as the Imperial Palace, the company's casino venue, remains closed.
Easily identifying the problem, How proffered a new plan to the CCC. He suggested that IPI pays $5 million to the government and adds an additional $1 million yearly to the CCC for the following two to four years, with the maximum sum at $24 million.
However, this revised payment method has been met with doubt from the CCC and General Public alike, considering IPI's history of unmet financial promises. On prior occasions, the company had promised vast financial resources that never appeared.
Reportedly, a Japanese backer is willing to invest a whopping $350 million if IPI holds on to its exclusivity.
The CCC's chairperson, Edward C. Deleon Guerrero, came back with a counterproposal. He urged IPI to make annual payments of approximately $5.1 million until the debt is paid off. IPI would be responsible for these payments, even after accounting for all newly established fees and legal responsibilities that have risen due to relentless legal matters.
Drug Smuggling Allegations
IPI now grapples with further negativity, as they reject claims made by a drug trafficker that he had been invited to Saipan by the company. Liang Yang, who recently pleaded guilty to conspiratorial charges involving possession of methamphetamine with the intent to distribute, admitted to this while making a deal with prosecutors. He was apprehended after 10 pounds of liquid methamphetamine, worth over $1.8 million, were seized.
The impending sentencing hearing in January will establish the penalties for his role in drug trafficking.
During his press briefing on Wednesday, How vehemently denied any direct link to Yang.
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Source: www.casino.org
