By: L.N. Reklai

KOROR, Palau — The prosecution of Clarence Sriderio Rengulbai, former chairman of the Aimeliik State Public Land Authority, has been deferred for six months under conditions set by the Palau Supreme Court. Rengulbai faced felony charges of Theft of Government Property in the First Degree and Misconduct in Public Office for allegedly misappropriating $87,846.83 in public funds.

A court order issued on Jan. 7 requires Rengulbai to repay the full amount to the Aimeliik State Public Land Authority by June 21, 2025, in addition to a $2,000 fine. If he fulfills these obligations, the case will be dismissed with prejudice, barring further prosecution on these charges. Failure to comply will result in the resumption of legal proceedings.

The charges, brought by Interim Special Prosecutor Tamara Hutzler, stem from allegations that Rengulbai diverted a land lease payment meant for the Aimeliik State Public Land Authority into his personal bank account. The payment, an annual lease fee of $87,846 from Palau Golf Inc., was issued in December 2022 and intended for the fiscal year 2022-2023.

Court documents reveal that Rengulbai deposited the check, which was made out to “Clarence S. Rengulbai Aimeliik State Public Land Authority,” into his personal account and used the funds for personal expenses, including a loan payment. During an April 2024 board meeting of the Aimeliik State Public Land Authority, Rengulbai admitted to receiving the payment but claimed ownership of the money because the check bore his name.

Palau Golf Inc. representative Jessie Zhang confirmed that the check was issued at Rengulbai’s insistence and was intended as the annual lease payment for public land.

Theft of Government Property in the First Degree, a Class A felony, carries a potential sentence of up to 25 years in prison or a fine of up to $50,000. Misconduct in Public Office, a Class B felony, is punishable by up to 10 years in prison or a fine of up to $25,000.