The U.S. Internal Revenue Service temporarily closed yesterday the casino area of the Tinian Dynasty Hotel and Casino because of an ongoing investigation, Tinian officials and other sources said. Dynasty’s hotel operations are not affected and tourists remain at the hotel.

Matthew Masga, chairman of the Tinian Casino Gaming Control Commission, confirmed that IRS temporarily closed the casino starting yesterday morning. He said the commission itself received a subpoena from IRS, and they have started working on the requested documents.

"We are complying with the subpoena. We were given up to May 9 for this," Masga told Saipan Tribune.

Masga, however, could not comment on the nature of the investigation nor the types of documents requested. He said the commission has two inspectors at the casino.

Just like other officials, Masga hopes that the casino operations will go back to normal as soon as possible.

Tinian Mayor Ramon Dela Cruz, for his part, said he’s informed that IRS "is looking into some concerns" about the casino.

He said the closure of the casino, if prolonged, will have a negative impact not only on the Tinian economy but also the entire CNMI. Dynasty is the biggest private sector employer on Tinian.

"It will have domino effect to the CNMI economy. I continue to urge the central government to be mindful of this closure. But again, Dynasty also has to be aware of its obligations. They cannot continue to ignore their obligations," Dela Cruz said. The Tinian mayor was on Saipan yesterday attending a homeland security-related training.

The Tinian Dynasty Hotel and Casino management has yet to respond to requests for comment on the temporary closure of the casino.

Don Farrell, the Tinian mayor’s chief of staff, separately confirmed yesterday that he met with a group of federal officials at the casino, "all wearing different uniforms."

"I was told this is an Internal Revenue Service operation. One person was taken into custody and transported to Saipan," he said.

Farrell said the casino area "was only closed temporarily to facilitate their work."

"They hope to close out their study shortly. At that time the casino and the casino cafe will reopen as if nothing happened," he added.

Another source said the person handcuffed and arrested is a Dynasty casino official.

Many of Tinian Dynasty Hotel and Casino’s employees also have yet to receive their paychecks for up to seven payrolls.

Delayed salaries have been a recurring issue at Dynasty.

Affected employees-U.S. workers and foreign workers-are torn between having delayed wages and losing their job.

The management earlier said that as soon as Dynasty catches up on its cash flow, they will be able to pay their employees. The Dynasty management, however, grants employees’ individual request to have a portion of their paychecks to be released especially if it’s for an emergency.

Tinian Dynasty Hotel and Casino is the only one on Tinian that offers five-star hotel facilities and casino that is the first of its kind in the Western Pacific. It opened on April 25, 1998, with a total of 412 guest rooms, including 22 executive suites and two presidential suites.

Last year, a federal judge affirmed a full $191,400 in civil penalties against Hong Kong Entertainment (Overseas) Investment Ltd., owner of Tinian Dynasty, when the hotel-casino withheld overtime earnings from 348 employees when they failed to pay these workers over four bi-weekly pay periods years back. The back wages were subsequently paid in full.

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