By: Eoghan Olkeriil Ngirudelsang
KOROR, Palau — The House of Delegates (HOD) issued a press release on May 23 to clarify that its recent decision approving House Joint Resolution 12-6-2 will generate “nearly $500,000” in revenue for Palau, supporting the nation’s housing programs.
The HOD responded to an article published in the May 20 edition of Island Times, titled “House narrowly approves $1 million settlement with coin minting company,” which the House claimed cast a “dark shadow” over the decision by omitting the projected revenues expected through the agreement. According to the House, the Palau National Development Bank (NDBP) anticipates receiving nearly $500,000 as a result of the settlement.
The House acknowledged Island Times’ reporting that some delegates expressed concern over a clause in the agreement, which states that NDBP agrees that Coin Investment AG (CIT) has been minting and selling Palau coins since 2005 without required approvals under Palauan law. By signing the agreement, NDBP “retroactively approves and ratifies those actions and waives any related claims against CIT.”
Island Times also reported that some delegates questioned the legality of retroactively approving an action that violated the law, arguing that such a precedent could undermine legal standards.
In its press release, the HOD stated the matter was more complex than it appeared. The House cited information from Special Prosecutor Tamara Hutzler and NDBP President and CEO David Proctor, who said Palauan government officials misled CIT into believing their coin minting and sales were legal over the past 20 years.
The HOD asserted that the Special Prosecutor assured delegates the resolution’s passage would not hinder her case and may in fact assist it. The House also claimed its legal counsel had provided a legal analysis supporting the resolution.
However, some delegates said they were not shown the legal opinion before the vote and questioned whether it was appropriate to pass the resolution while an investigation was ongoing.
Palau National Code Title 26, Section 123(l), grants the NDBP the authority “to negotiate agreements for the issue of legal tender commemorative coins, which agreements shall not be binding or of legal effect unless and until approved by joint resolution of the Olbiil Era Kelulau.”