Northern Mariana Islands casino commission says government owes $291K

March 3, 2025

Northern Mariana Islands casino commission says government owes $291K

The Northern Mariana Islands Commonwealth Casino Commission (CNMI) has informed Finance Secretary Tracy B. Norita that the central government still owes them $291,666, despite a recent allocation of $250,000 meant for back pay. According to Public Law 24-1, which outlines the revised fiscal year 2025 budget, the $250,000 was designated to cover the annual salaries of commissioners for 2023, as reported by Marianas Variety.

The amount will be distributed among Commission Chairman Edward C. Deleon Guerrero, Vice Chairman Rafael S. Demapan, Commissioner Mario Taitano, and former Commissioners Ramon S. Dela Cruz and Martin Mendiola, with each receiving $44,583. Commissioner Thomas A. Manglona, who joined in October 2024, will receive $27,083.

Dela Cruz and Mendiola’s terms ended last year. In a letter to Norita, Vice Chairman Demapan pointed out that commissioners are entitled to an annual salary of $65,000. However, the back pay allocated under P.L. 24-1 only covers 69% of what is owed. “For 2023, each commissioner was due $65,000, but they will only receive $44,583, leaving a balance of $20,416 per commissioner,” he stated.

Senator questions Commission’s role

Senator Celina R. Babauta has raised concerns about the relevance of the casino commission now that the casino industry is defunct. During a Senate session on 14 February 2025, she questioned the inclusion of $250,000 for casino commissioners in the revised fiscal year 2025 budget approved by Governor Arnold I. Palacios.

“I have consistently advocated for fair and equitable compensation across all regulatory bodies,” Babauta told the media Thursday. She explained that during her tenure in the 22nd House of Representatives and her first year in the Senate, she introduced a bill to align the casino commissioners’ salaries with those of other boards and commissions. “It is a matter of fiscal responsibility and fairness,” she said.

Babauta pointed out that currently, only the CCC and the Cannabis Commission receive annual salaries exceeding $50,000—$65,000 and $55,000, respectively—despite holding meetings just once a month. “These commissioners are paid a full annual salary regardless of whether they convene a meeting each month. This lack of oversight is unacceptable and preposterous,” she said.

She also questioned the CCC’s justification for full operational status following the casino’s closure. “If the casino is closed, how can the commission justify its full operational status?” she asked.

Additionally, Babauta criticised the basis for the back pay. “The claim that CCC employees are not government employees raises serious questions about the basis for this back pay,” she said. “If they are not government employees, on what grounds are they entitled to public funds? If this is not the definition of ‘ghost employees,’ I don’t know what is. Will the legitimate government employees affected by two years of austerity measures across the government and municipalities also receive back pay as well? I hope so.”

She further challenged the argument that the CCC operates 24/7. “While government employees worked under challenging conditions with reduced pay during austerity measures, CCC members received their full salaries. This disparity is unjust and infuriating,” she said, reiterating her commitment to fiscal responsibility and transparency.

CCC defends itself

Casino Commissioner Mario Taitano responded to Babauta’s criticisms, stating that complying with the law is “an obligation of our government.” He added, “I hope Sen. Celina Babauta finds solutions to our dying economy rather than criticizing casino gambling, which has more potential than the tourism industry, which is waiting for the final nail on the coffin, so to speak.”

Vice Chairman Demapan also defended the commission’s role. “Rest assured that we will continue to see what we can do to make sure the casino industry works,” he said during a meeting on Wednesday. “Yes, we are doing something. But at this point, there are litigations, cases in the court that need to be respected. We will wait for the result, and once that comes out, then the CCC will ensure its due diligence.”

He thanked the governor and Legislature for supporting the commission. “We appreciate the understanding of our leaders,” he said.

Casino industry’s legal issues

The CCC has reiterated that the central government still owes the commissioners $291,666. Under Public Law 18-56, which legalized casino gaming on Saipan, commissioners’ salaries are supposed to be funded through an annual regulatory fee collected from the sole license holder, Imperial Pacific International (IPI). However, IPI has not met its obligations for nearly five years and is currently undergoing bankruptcy proceedings in federal court.