Overview:
Palau’s Senate investigates the Solar Pacific project over alleged illegal tax breaks and hidden ownership, seeking public answers.
By: L.N. Reklai
KOROR, PALAU – The Palau Senate has launched a major investigation into the country’s biggest solar power project, the Solar Pacific Independent Power Producer (IPP), referring it to the Special Prosecutor over serious allegations. Lawmakers believe millions of dollars may have been lost due to possible illegal tax breaks and other issues with the project, which was supposed to help Palau go green and cut down on buying expensive diesel fuel for electricity.
The controversy started when the Senate found out that Solar Pacific and its partner Juwi got a big tax exemption that did not follow Palau’s laws. The Senate claims this was approved by a former finance minister without the proper rules being followed. President Surangel S. Whipps, Jr. expressed shock over the discovery and said the law clearly did not allow such an exemption. The ex-minister at the center of the decision did not testify to explain his actions, despite being ordered to do so by the Senate, raising even more questions.
Lawmakers also claim that changes to major purchase agreements for the project were made without approval from the Palau Public Utilities Corporation and PEWA boards. They accuse Solar Pacific of hiding who really owns the company by using complex paperwork and transferring ownership after the Senate began investigating. Senate said this lack of openness could hide conflicts of interest or even corruption.
The Special Prosecutor will now investigate all possible criminal and civil law violations, the roles of public officials, and the reasons behind Palau’s largest green energy project going off track. The probe aims to make sure rules are followed and public money is protected