The Office of the Public Auditor is seeking a meeting with the Senate Committee on Energy, Public Utilities and Telecommunications regarding its request for an investigation of the Palau Public Utilities Corporation ( PPUC).
The committee wants PPUC investigated for the payment to the Asian Development Bank (ADB) of appropriated government funds when the Senate has prohibited such payments.
The committee also want PPUC investigated for inconsistencies in its financial statements and documents from the Solar Pacific.
PPUC has also failed to account for the long term value of PPUC’s contractual obligation and indication that PPUC is overbilling the customers.
OPA Acting Director Saturnino Tewid said response that because the committee wants an audit and investigation , it will be best to meet to discuss detail the request.
Earlier, PPUC said The Palau Senate is investigating potential financial difficulties at the Palau Public Utilities Corporation (PPUC), following reports suggesting the corporation could be facing bankruptcy.
A press release issued by the Senate on May 26, 2024, stated they are examining reports and statements concerning PPUC’s financial situation.
“The Senate seeks full cooperation from all relevant parties, including PPUC and the Palau Energy Administration (PEA), who may possess information regarding PPUC’s operations and related concerns,” the release said.
On May 1, 2024, PPUC CEO Frank Kyota sent a letter to both houses of the legislature requesting specific policy changes. These changes included the repeal of a provision in Title 37 of the Palau National Code (PNC) that restricts PPUC from charging water rates to residents of outlying states. Kyota argued this change would allow PPUC to “recover the cost of providing that service” and generate revenue for water system projects in those areas.
The letter also requested five additional amendments, including one that would allocate $5 from the Pristine Paradise Environmental Fee (PPEF) to water infrastructure and quality improvements in Kayangel, Peleliu, and Angaur. (By: Bernadette Carreon)