Imperial Pacific International (IPI) hasn’t been making many friends in Saipan or the Commonwealth of Northern Mariana Islands (CNMI) lately. Its Imperial Palace casino was, at one point, to be the biggest driver of the economy in Saipan, but reality has proven to be substantially different. While IPI, along with CEO Donald Browne has now officially been held in contempt of court for not paying its debts, troubles only continue to mount for the embattled casino operator and even the Saipan Chamber of Commerce (SCC) is now calling it out.
The SCC sent a letter to the Commonwealth Casino Commission (CCC) this week, in which the chamber’s president, Velma M. Palacios, blasted IPI for what can only be described as egregious dereliction of duty. Palacios directed her letter to CCC chair Edward C. Deleon Guerrero, asserting, “No investor that touts a $7-billion casino investment should have any difficulty completing their first phase of development and paying their past due payroll, taxes, and fees timely—even in a pandemic.”
IPI has experienced significant embarrassment over the past couple of years as a result of allegations of nepotism, bribery, illegal trade deals and illegal hiring practices surfaced. This year hasn’t seen any improvement, as the Imperial Palace has been forced to close because of COVID-19. That has thrown IPI into financial turmoil on an epic scale that doesn’t offer the slightest glimpse of having a happy ending.
However, Browne and IPI still believe the company is doing great things for Saipan and the CNMI. In response to the SCC’s letter, Browne, who has reportedly not been paid in months, came to the defense of the company and asserted, “It’s easy to pick on businesses when they’re struggling. Rational thinkers know well that the CNMI has been insulated from the effects of the pandemic due to the federal government bailout. Once the Keynesian stimulus runs out at the end of this month, the CNMI will need businesses determined to weather the storm.”
He added that IPI has invested around $1 billion in the area and has created “thousands of jobs.” Of course, it doesn’t do any good to create jobs if you’re not going to pay your employees. Browne also asserted that the company has paid more than $300 million in taxes and fees; however, it is now past due on a similar amount in fees, plus millions more in private bills to construction companies like Pacific Rim, so using that excuse doesn’t carry much weight, either.
Palacios doesn’t lack empathy for the situation in which IPI now finds itself; however, in large part, it’s where it is because it didn’t put forth the extra effort needed to put the business on the right track. She asserted in her letter, “As businesses operating in the CNMI, we should all be held accountable for our rippling impacts on our community.” As far as impacts go, IPI’s actions in Saipan have created more than a ripple; they’ve created a tsunami.
