Press Release
On May 20, 2025, Eoghan Olkeriil Ngirudelsang reported on the House of Delegates passage of House Joint Resolution 12-6-2 in his story, “House narrowly approves $1 Million settlement with Coin Minting Company.”
The story casts a dark shadow over the House of Delegates decision to pass HJR 12-6-2, leaves out critical information on the circumstances surrounding the settlement agreement, and neglects to inform the public that in addition to the $1 million payment, HJR 12-6-2 also provides for an agreement between the National Development Bank of Palau (NDBP) and CIT Coin Investment AG (CIT) to mint and distribute commemorative legal tender coins on behalf of the Republic of Palau that will bring to the Republic nearly $500,000.
When the House of Delegates received the April 3, 2025 NDBP-CIT agreement, there were many questions and concerns raised with the ratification agreement clause that, as Island Times reported, “acknowledges that CIT has been minting and selling Palau coins since 2005 without approval from the NDBP,” and “[b]y signing the new agreement, NDBP retroactively approves and ratifies those actions and waives any related claims against CIT.”
Contrary to what would appear to be a straightforward settlement case, the Palau coin case is more complex, is what Delegates later learned from their meetings with Republic of Palau government officials from the Office of the Special Prosecutor (OSP), Ms. Tamara Hutzler and the President/CEO for the National Development Bank, Mr. David Proctor.
When Delegates met separately with the OSP and the NDBP they received eye opening information- that CIT was defrauded by Palau government officials who provided CIT with the authorization to mint the coins. The OSP’s investigation concluded that CIT actions were carried out under the belief that they were working with government officials with legal authority. The OSP assured the Delegates that passing HJR 12-6-2 would not hinder her investigations and to the contrary, that CIT was cooperating with her investigations into the fraud by government and private-citizen actors.
NDBP’s CEO also assured the Delegates that they had conducted “thorough due diligence” and was convinced that CIT “will produce premium quality commemorative coins for the Republic.” The House of Delegates Legal Counsel Office also provided Delegates with a legal analysis that supported passing the resolution.
The House of Delegates strongly believes it has made a good policy decision in its passage of HJR 12-6-2, one that will benefit the citizens of the Republic with additional revenue to support local housing and business loans.