By: Summer Kennard
KOROR, Palau (July 21, 2025) — A criminal investigation into the disappearance of more than $86,000 in Japanese government funds intended for Angaur State has been completed according to Palau’s Bureau of Public Safety.
The case stems from a 2023 grant by Japan’s Grassroots Grant Program (GGP), which provided $211,600 to Angaur State for the procurement of a ferry boat. After the project was completed, the Japanese government calculated that $86,793 should have remained unused. However, during follow-up reviews, the funds were found missing.
“The investigation is done and now it is awaiting trial,” confirmed Director Curtis Elobt of the Bureau of Public Safety in an interview last week.
According to Elobt, the Japanese government flagged the issue after not receiving updates about the unspent funds. They raised formal concerns with Palau’s Criminal Investigation Division (CID), prompting an official inquiry.
Elobt explained that former Angaur governor Steven Salii is investigated for withdrawing the remaining funds from the state’s bank account without informing the Japanese government. “When Angaur elected a new governor, the previous governor, Steven Salii, withdrew the money from the Angaur State bank account without the Japanese government’s knowledge,” he said.
The investigation encountered delays due to difficulties obtaining financial records. Initially, authorities tried to retrieve bank documents from the Bank of Hawaii, but were denied access because the account was still in the name of Angaur State and required proper legal authorization.
“We tried again later with a warrant for Angaur State,” Elobt said. “But then we found the account was closed. When Steven Salii withdrew the money, he closed the account. Once the account was closed, it belonged to Bank of Hawaii.”
Investigators also asked Angaur State for any receipts or documentation explaining the withdrawal, but none were provided. “They could not provide receipts,” said Elobt. The team then reinitiated the process and successfully obtained a warrant for Bank of Hawaii to release transaction records and video surveillance footage that could show who accessed the funds.
The case drew renewed public attention after Japanese Ambassador Hiroyuki Orikasa raised the issue during the ribbon-cutting ceremony for the renovated Minotobashi Bridge on July 17. He warned that unresolved concerns over GGP funds could affect future GGP aid to Palau.
The $86,793 in question was part of the leftover funds from the original $211,600 grant allocated specifically for ferry procurement. Japanese officials confirmed the exact amount expected to remain after the completion of the project.
Director Elobt confirmed that no funds have been recovered to date and the matter is now in the court’s hands.
Attempts to reach former Governor Salii for his comments were unsuccessful. Current Governor Natus Misch said he refrained from speaking until the case is filed.