By: Eoghan Olkeriil Ngirudelsang
KOROR, Palau — Palau’s Public Auditor Saturnino Tewid faced intense questioning from the Senate on Wednesday during an oversight hearing that lasted more than two hours. Senators raised concerns about persistent delays in audit reports, which they said hinder their ability to conduct proper oversight of public funds.
Tewid, presenting via PowerPoint before the Senate Ways and Means Committee, outlined his office’s responsibilities. In addition to auditing public funds, his role has expanded over the years under mandates from the Olbiil Era Kelulau (OEK). These include serving as chairman of the Board of Accountancy (RPPL 3-71), submitting audit reports to the Commission on Code of Ethics, Attorney General, and Special Prosecutor (RPPL 5-32), conducting attestation audits of government performance every two years (RPPL 6-11), and issuing an annual financial report on the Palau National Healthcare Fund (RPPL 8-14).
Tewid cited several challenges causing audit delays, including a lack of staff and resources, a shrinking number of auditing firms in the region, and legal deadlines requiring simultaneous audits of the national and state governments to be completed by June 30 each year.
The Office of the Public Auditor (OPA) contracts Ernst & Young (EY) to conduct these audits. Tewid projected that Palau’s national government would catch up on outstanding audits by 2026, with the audit for that year due by June 30, 2027.
Delays in Audit Reports Raise Senate Concerns
“The national government is years behind on its audit reports,” Tewid acknowledged. He said the 2022 audit is expected to be completed by April 30, with the 2023 audit following in September. The 2024 audit is projected for completion in April 2025.
Senators expressed frustration, emphasizing that delayed audits impede their ability to scrutinize government spending. Sen. Rukebai Inabo pointed to Aimeliik State’s incomplete audits dating back to 2018.
“Aimeliik State’s audits for 2018 and 2019 are still ongoing, and the reports for 2021, 2022, and 2023 are pending,” Inabo said. “If audits from many years ago are unnecessary, why not stop those and just audit the last two or three years? Auditing six years ago is unnecessary information.”
Sen. Stevenson Kuartei stressed that the Public Auditor’s Office should remain independent and avoid tasks like training state employees to produce financial statements. Inabo added that if a state lacks proper documentation for auditing, OPA should exercise its authority to request that the Ministry of State withhold funds.
Senators Await Key Audit Reports
Sen. Mark Rudimch raised concerns about the overlap between the Senate’s oversight role and the Public Auditor’s responsibilities.
“We are still waiting for answers from OPA regarding Minister-in-Waiting Kaleb Udui Jr., specifically audits related to Palau Stablecoin and the Ministry of Finance’s alleged over-expenditure on the Koror-Airai Sanitation Project (KASP) loan,” Rudimch said. He also noted that a request from EPUT Chairman Kerai Mariur for a performance audit of the Palau Public Utilities Corporation (PPUC) remains incomplete.
Sen. TJ Remengesau acknowledged that these challenges are not new.
“You’ve been here before, and despite your efforts, it is clear that the main issue is a lack of funding and human resources,” Remengesau said.
Tewid concluded the hearing by committing to provide the Senate with a detailed breakdown of OPA’s needs and costs. Lawmakers agreed to support additional funding for the office, which currently operates with only five staff members, including one administrative officer/systems coordinator, four auditors, and a secretary.