IPI proposes payment plan to regain suspended casino licence
IPI is proposing to pay US$5m a year to the government and US$1m to the Commonwealth Casino Commission.
Northern Mariana Islands.- Imperial Pacific International (IPI) has put forward a proposal to regain its suspended casino licence. How-Yo Chi, the newly appointed manager/director, presented the plan during the CCC board’s monthly meeting.
IPI proposed payment of US$5m annually for four years to the CNMI government as a casino licence fee and and US$1m per year for four years to the Commonwealth Casino Commission (CCC) as a regulatory fee.
Chi is proposing to make a seven-figure payment to the CNMI and CCC within a week. IPI wants a transition period of two to four years to resolve all outstanding obligations. Once the obligations are settled, it would make a partial payment to CNMI and CCC and then focus on reinstating its licence. It said it was willing resolve to start payments so CCC could rehire staff and IPI could resume operations and work out a payment plan.
A week ago, the CCC determined that the casino operator must pay US$62m in casino licence fees to the CNMI government within 30 days.
It’s emerged that the CCC had proposed a settlement to IPI, which involved payment of US$36m and the loss of casino exclusivity. However, IPI argued that this does not reduce any liabilities.
According to the CCC, IPI owes the CNMI government US$15.5m a year for its exclusive casino licence fees for the years 2020, 2021, 2022, and 2023. IPI says it should not be obliged to pay the licence fees for the years 2021, 2022, and 2023, as the licence was suspended and IPI was unable to use it or derive any benefits from it.
