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Casino commission: Lying has serious implications for IPI

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THE Commonwealth Casino Commission on Thursday told Imperial Pacific International officials that making false statements about its finances would have “serious implications” for the casino investor.

On Jan. 20, 2020, the casino commission ordered IPI to certify in writing that: (a) IPI was a “going concern” as that phrase is commonly used in the area of financial accounting; (b) IPI, as a business entity, was solvent (c) IPI had the present ability to pay debts as they mature and become due, and  had paid all such debts within 90 days of their accrual; (d) IPI had the present ability to pay private entities all payments required by contract, and the casino licensee had no such uncontested payables 90 days or older; and (e) IPI had the present ability to fully construct the entirety of the initial gaming facility in Garapan.

In response, IPI answered “yes” to all these questions.

During the commission meeting on Thursday, Pacific Rim president Keith Stewart said, “IPI failed to live up to their commitments time after time.”

Pacific Rim, the former contractor of IPI, has taken the casino investor to court to collect what it says IPI owes, which amounts to over $6 million, including attorney’s fees and costs for filing the lawsuit, as well as pre-judgment interest.

Newly elected casino commission chairman Edward C. Deleon Guerrero on Thursday reminded the IPI officials present in the meeting of the certification they submitted in response to the January order.

He said it was Dong Ting, an IPI director, who provided the casino commission with a certification stating that IPI was in good financial position and IPI had sufficient funds to complete the hotel resort.

“That’s in an official document submitted to CCC pursuant to its order. If those statements are not correct or they are false, then there would be serious implications,” Deleon Guerrero, said noting that the casino commission continues to hear a “litany” from unpaid vendors of IPI.

Commissioner Ramon Dela Cruz said “if IPI does not come out with substantial remedies, the commission will have to look at other avenues that will force IPI to comply.”

Rep. Tina Sablan, who attended the meeting via video conference, commented on her Facebook page: “IPI has been chronically negligent in paying nearly all obligations and is in arrears with vendors, workers, taxes, public land leases, utilities, and Community Benefit Fund requirements spelled out in the casino license agreement.”

She also noted that the casino commission chairman has “called for a hearing on IPI's financial suitability.”

November 2020 pssnewsletter

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