September 6, 2016

Saturnino Tewid

Palau Public Auditor

Palau Public Auditor Office

Republic of Palau   96940

Re:   Request to audit Peleliu State Government

Dear Mr. Tewid:

Good day to you and the staff of the Palau Public Auditor’s Office. We write to you with utmost  mportance regarding concerns related to how public funds are being expended within the government of Peleliu State, with particular emphasis on the Executive and Legislative branches. This letter is an official request to you and your office to audit our state government expenditure beginning from fiscal year 2013 to the current fiscal year 2016.


As you may already know, this request comes at the heels of political upheaval plaguing the state of Peleliu since January 1, 2016 Specifically, we request that your office conduct a thorough and accurate audit in the following areas:

  1. Audit the Executive Branch from January 1, 2013 to August 31, 2015 relative to the requirements under PSPL No. 218-03 and any other state laws.
  1. Audit the Executive Branch and Legislative Branch from January 1, 2016 to the time   your office begin the audit.  We believe there was violation of the state law whereby   public funds were expended without justification during and after the court decision    this year which we prevailed.  Further, we believe public funds were expended in   violation of state law when the executive branch implemented the so-called   Caretaker Government under the pretext that the situation in Peleliu State was   applicable under the Caretaker Act.  We also believe that public funds are currently     being expended in violation of Article VIII, Section 6 and Article X, Section 1 of Peleliu State Constitution, including the Legislature’s Rules of Procedures as the    recent Swearing-In ceremony in Peleliu, once again, was a testimony to such Violation.
  1. We believe that there have been misuses of public funds by the Executive Branch   for the PAN funds received by the Office of the Governor for the implementation of   PAN project plan in Peleliu.  From FY 2013 to FY 2015, a total of $ 251,117.00 were  received by the Office of the Governor, however, the PAN project plan has not been  fully implemented.  A total of $106,826.43 was deposited in Bank of Hawaii Account   No. 0032-487572, however, in his proposed fiscal year 2015 budget he requested   $21,000.00 to fund Pelelliu State PAN office.  We also believe that PAN funds are  used for various purchases unrelated to PAN project’s implementation program.  We  request your office to audit PAN funds received by Peleliu State Government from   2013 to 2016.
  1. We also believe that Peleliu Marine Transportation Authority was created by state  law with initial public funds used to implement the transportation program with state   boats transferred to the Authority and with all revenue collected considered public   funds.

In the last several years since the implementation of the Authority, the Authority has  received several thousands of public funds from the national government and its   revenue collection has increased due to transportation demand by PPUC, private  rentals and local passenger and cargo.  Additionally, passenger and cargo fare have   increased dramatically which translate to increase in revenue collection.  We request that PMTA be audited also so the people of Peleliu will know how much is collected  annually and how funds are expended as the state boats are considered our  Compact Road to and from Koror.  We believe there are funds being misused as it  has come to our attention that a small loan program has been created by the Board of Directors of PMTA within the PMTA to allow the board members and staff to  borrow funds without interest from the Authority in violation of the very law that  created the Authority.

Mr. Tewid, it is highly critical that you make Peleliu State as your office’s priority for  audit and we ask that it be done before the end of this year or as soon as possible.

Thank you for your time and we seek your full support and assistance regarding this matter and hope to receive your favorable reply to our request urgently.



/s/Leg. Billy Rekemel, Legislator At-Large       s/  Leg. Flora M. Tewid, Legislator At-Large

/s/Leg. Cordino Soalablai, Ngerdelolk            / s/  Leg. Mesai Chin, Ngesias


/s/Leg. Edburgh Mabel, Ngerkeukl               /  s/  Leg. Charles Salii Rekemel, Teliu