KOROR, Palau (April 21, 2025) — Minister of Finance nominee Kaleb Udui Jr., whose confirmation was scheduled for yesterday, April 21st, requested a delay in a scheduled Senate confirmation hearing, citing the need for more time and legal advice to adequately respond to a comprehensive set of questions regarding his past conduct and policy decisions while in office.
In a formal letter dated April 17 to Senator Mark Rudimch, Chairman of the Senate Committee on Ways and Means and Financial Matters, Udui asked that the hearing originally set for April 21 be rescheduled to April 28, 29, or 30. He explained that he is in the process of responding to a four-page questionnaire issued by the Committee and emphasized the importance of seeking legal counsel to ensure his responses are “adequately presented and appropriate” for the official record.
The Senate’s April 14 letter to Udui outlined numerous concerns stemming from his previous term as Minister, including unresolved issues related to the launch of Palau’s digital currency initiatives, potential conflicts of interest, alleged bypassing of procurement processes, and questions about transparency in financial dealings and public fund allocations.
“ In his re-nomination letter, the President implied that the Republic of Palau would face dire economic consequences without your personal involvement as Minister of Finance. This concern appeared to justify your appointment as a personal advisor and special assistant overseeing the Ministry of Finance. If the Republic ‘s financial stability is believed to be at risk due to your potential absence, does this not reflect deeper, unresolved leadership or institutional issues? If so, please elaborate,” stated one of the questions posed to nominee Udui.
The Committee pointedly questioned Udui’s departure from a previous Senate hearing while under subpoena, his promotion of blockchain projects like the Palau Stablecoin and his role in Compact Review negotiations with the United States. The letter also raised broader issues of constitutional compliance and institutional integrity, including the alleged failure of the Office of the Public Auditor to cooperate with legislative oversight.
One of the questions posed was, “ The Acting Public Auditor has publicly stated that nearly all of Palau’s sixteen states are effectively unauditable due to widespread non-compliance with basic accounting procedures, as outlined in the regulations he issued under RPPL 9-9. This includes non non-compliance within the Office of the Public Auditor itself. How did you justify increasing budget allocations during your previous term to agencies or budget line items that were demonstrably non-compliant or unproductive? What was the rationale or intended purpose behind allocating additional funds under these circumstances?”
Senator Rudimch stated that while the President has recommended judicial review of these matters, the Senate prefers to maintain legislative oversight using existing processes of checks and balances. Udui was asked to respond in writing to all inquiries before his public appearance and to be prepared to testify under oath.
In his reply, Udui acknowledged receipt of the questionnaire and expressed appreciation for the Committee’s understanding as he prepares his full response.
His hearing was postponed pending his responses to the Senate’s inquiry, and his confirmation remains pending under Senate Resolution No. 12-33.