By: Eoghan Olkeriil Ngirudelsang
NGERULMUD, Palau— The House of Delegates narrowly passed House Joint Resolution No. 12-6-2 during the first day of its second special session, ratifying an agreement between the National Development Bank of Palau (NDBP) and CIT Coin Investment AG to mint and distribute commemorative legal tender coins on behalf of the Republic of Palau.
The resolution passed with 10 votes—just one more than the nine required—amid vocal opposition from six delegates who raised concerns over past unauthorized minting activities involving CIT and a private company.
The agreement, outlined in the resolution’s ratification clause, acknowledges that CIT has been minting and selling Palau coins since 2005 without approval from the NDBP. By signing the new agreement, NDBP retroactively approves and ratifies those actions and waives any related claims against CIT.
In return, CIT will pay NDBP $1 million within 10 business days of the agreement’s effective date. The payment is intended as a final settlement of all disputed claims between the parties and the Republic of Palau and is not to be interpreted as an admission of wrongdoing by CIT.
Delegates who opposed the resolution cited long-standing concerns over the legitimacy and legality of CIT’s past activities.
“This company has been minting coins under Palau’s name for years without proper authorization,” said Kayangel Delegate Noah Kemesong. “Why hasn’t the government investigated this? It bothers me that we’re now legitimizing years of illegal activity.”
Ngchesar Delegate Rebecca Ngirmechaet questioned the adequacy of the settlement. “Considering the many years of production, $1 million is not enough,” she said.
Ngarchelong Delegate Timothy Sinsak said the agreement effectively forgives 20 years of alleged wrongdoing without holding anyone accountable. “We will permit or legitimize prior years of wrongdoing. I cannot support this,” he said.
Ngiwal Delegate Elender Ngirameketii added that “there are still many unanswered questions” and voted against the resolution.
Ngeremlengui Delegate Portia Kesolei expressed concern over the lack of alternative options. “Is there no other entity that can mint commemorative coins for Palau other than CIT?” she asked, while acknowledging NDBP’s efforts to secure revenue for housing and loan programs.
Ngardmau Delegate Aderkeroi argued the resolution sets a troubling precedent. “This agreement is an admission that previous coins were unauthorized. If we adopt this resolution, we will support acts of fraud with our integrity,” he said.
Only two delegates—representing Hatohobei and Peleliu—spoke in favor of the measure, citing the urgent need for funding to support housing loan applications by Palauans.
Despite the controversy, the resolution was adopted. It now awaits ratification by a two-thirds majority of the Senate before it can takes effect.