Overview:
A legal challenge is now underway over a controversial land deal in Peleliu. Some of the state's traditional leaders are asking the court to void the transfer of public lands to the national government—lands intended for U.S. military use—raising serious questions about legality, transparency and who controls the island’s future.
Lawsuit claims transfer of public lands to national government violated constitution and bypassed public process
By: L.N. Reklai
KOROR, Palau — A group of traditional leaders and residents from Peleliu has filed a lawsuit in the Palau Supreme Court seeking to overturn a land deal that transferred dozens of public land parcels to the national government, arguing the transaction violated the state constitution and misused public funds.
In a verified complaint filed April 30, the plaintiffs challenge an Oct. 15, 2025 conveyance that moved control of public lands from the Peleliu State Public Lands Authority (PSPLA) to the national government. The lands were sold with the stated purpose of making them available for military use by the United States government.
The suit names PSPLA Chairman Dominic Rekemesik, the authority’s board, Peleliu House Speaker Billy G. Rekemel, the 15th Peleliu State Legislature and other unnamed officials, accusing them of authorizing and supporting the transfer without a state law, public notice or proper consultation.
According to the complaint, the transaction is “void ab initio,” or invalid from the outset, because the Peleliu Constitution requires that any permanent transfer of state property be approved by law. The plaintiffs argue no such law was enacted to authorize the conveyance.
The complaint also alleges that funds or other compensation tied to the land transfer were not deposited into the Peleliu State Treasury, as required under constitutional finance provisions.
The chiefs are asking the court to declare the conveyance invalid, order a full accounting of any funds received and require that all proceeds be properly deposited into the state treasury. They are also seeking to block any further use or spending of the funds outside constitutional processes.
In addition, the plaintiffs are requesting damages, attorneys’ fees and a ruling that the defendants breached their duties to the people of Peleliu.
The case adds to growing scrutiny over recent land transactions in Peleliu, particularly those linked to planned infrastructure and defense projects involving the United States, as questions continue over transparency, public consultation and long-term control of state lands. (Full disclosure: This article was edited and researched in part with the use of artificial intelligence.)