Gubernatorial bets call for tighter investor vetting after IPI collapse

Recover what the CNMI can, properly vet future investors, support struggling businesses when warranted, and avoid placing the economy in the hands of another single major company.

Those were among the prescriptions offered by the three gubernatorial bets when they were asked how their administrations would pursue money owed by Imperial Pacific International (CNMI) LLC and prevent another major investor from leaving the Commonwealth with millions of dollars in unpaid claims.

Independent gubernatorial bets Blas Jonathan “BJ” T. Attao and Lawrence F. Camacho and CNMI Republican Party gubernatorial bet Ralph DLG Torres addressed IPI’s bankruptcy during the fifth question of the Marianas Press 2026 gubernatorial debate last Aug. 18 at Pacific Islands Club Saipan’s Charley’s Cabaret.

Moderator Thomas Manglona II noted that the final order in IPI’s bankruptcy listed about $40.9 million in combined claims for the CNMI Treasury and Commonwealth Casino Commission, with no guarantee that the Commonwealth would recover the full amount.

Manglona then asked: “As governor, what specific steps would you take to maximize the Commonwealth’s recovery, and what would you do differently to prevent another major investor from leaving the NMI with millions of dollars in unpaid government claims?”

The IPI question was the fifth of 11 posed during the debate and was the last before the program went into a 10-minute intermission.

Attao, a longtime House representative, said IPI’s total obligations to the CNMI government went beyond the $40.9 million identified in the question. He claimed the company owed nearly $100 million in casino license fees and more than $25 million to the Casino Commission.

“$40.9 million, that’s a small chunk of money, but we don’t even know if the government’s going to get a piece of that money yet because there’s other debtors that they owe,” Attao said.

Attao said his administration, together with running mate and House Speaker Edmund S. Villagomez, would ensure that prospective investors undergo proper scrutiny before receiving government support or incentives.

He said large investors often seek benefits such as qualifying certificates and tax credits, making careful vetting essential.

“There’s new investors that are very interested right now. They say this process is kind of taking a long time. Well, we learn from our mistakes because we want to make sure that they get vetted properly,” Attao said.

Attao also urged the CNMI to focus on smaller investors rather than depending heavily on another major company.

“Little footprint, maximum economic activity. Those are the types of businesses we need to invite,” he said.

Attao said the Commonwealth Economic Development Authority and Department of Commerce should serve as the government’s principal arms in evaluating prospective investors and helping responsible businesses establish themselves in the CNMI.

Torres, a former governor, agreed that investors must be vetted but said the government should also be prepared to adjust laws or regulations when an established company is struggling because of circumstances beyond its control.

He cited IPI’s annual $15-million casino license fee and said proposed amendments addressing the obligation during the COVID-19 pandemic were not enacted. He argued that the continuing charge contributed to the company’s collapse.

Torres also attributed IPI’s difficulties partly to changes in China’s approach to overseas gambling. His characterization of Chinese law was not independently verified during the debate.

“As a government, we have to also look at the opportunity to change regulations to assist a company,” Torres said.

Torres said the approach should apply not only to casinos but to any company making a substantial investment in the Commonwealth. He said government officials should be willing to discuss changes to laws, regulations, or Department of Public Lands agreements when an investor faces a force majeure or another major disruption.

“But yes, at the end of the day, we want them to pay their dues,” Torres said. “But it’s all important that we work with them and we see their progress.”

Torres argued that the entire CNMI benefited while IPI was operating successfully and also suffered when the company failed.

“When IPI was succeeding, we all were succeeding. Everybody on this island benefited one way or the other,” he said.

Camacho, a former Education commissioner, said one of his first actions would be to meet with the new owner of IPI’s former casino-resort assets and determine what it intends to do with the unfinished Garapan property.

“Speaking of IPI, the first thing I’m going to do is track down and have a sit-down with the new owner of IPI and figure out what the heck is going on with it and what their vision is,” Camacho said.

Camacho described the unfinished property as a major problem for the tourism industry and said the CNMI should pursue specialized industries capable of operating sustainably in the islands.

He warned against depending on companies that produce rapid but temporary economic gains.

Camacho said he and running mate and former Senate president Edith Deleon Guerrero would insist on careful vetting and coordinate government agencies to help qualified investors succeed.

He also said residents should have a say in determining which industries are welcomed into the Commonwealth.

“If the people don’t want it, we don’t want that type of industry,” Camacho said.

The gubernatorial bets then got a minute each for rebuttal.

Torres used his rebuttal to reiterate that vetting should apply to every large investor, not only casino operators.

He said the government should evaluate what an investment would contribute to the Commonwealth, retirees, and children, as well as its possible environmental effects.

“We do have to vet. We have to make sure that they’re environmentally safe. And they’re part of our community,” Torres said.

Camacho used his rebuttal to say that the CNMI must have adequate utilities and other infrastructure in place before recruiting specialized industries.

He said bringing in investors without ensuring that residents can afford the cost of living or that infrastructure can support new development could cause the Commonwealth to repeat past mistakes.

“Otherwise, we’re just bringing in, for the sake of bringing in, industries, and that’s not fair for the people,” Camacho said.

Attao closed the rebuttal round by proposing educational tourism as an industry that could diversify the CNMI economy without leaving a large physical footprint.

He placed the worldwide educational-tourism market at about $500 billion and said capturing even a fraction of it could inject substantial revenue into the Commonwealth. The estimate was Attao’s and was not independently verified during the debate.

Attao said the CNMI should help Northern Marianas College and the Public School System attract students from abroad and promote the Commonwealth as an educational-tourism destination.