A proposed Senate Joint Resolution 11-9 urges President Surangel Whipps Jr. to withhold payments to Asian Development Bank for the Koror-Airai Sanitation Project Loan until issues raised by the Palau Public Auditor’s audit of the project are resolved.
The resolution states that the Office of Public Auditor has reported number of issues relating to the implementation of the KASP and that a meeting between OEK, the KASP Project Steering Committee and MPII must take place to address the findings and to determine a way forward.
In the meantime, it says, Republic should freeze payment on the “outstanding KASP-related ADB loans” until issues and concerns raised are resolved.
Key finding from the KASP audit conducted by the Office of Public Auditor was that lack of proper planning, lack of implementation plan, lack of key personnel required for the implementation of the project, absence of key decision makers during the height of the project, led to delays which led to an increase in the overall cost of the project by nearly $12 million resulting in the removal of a major component of KASP, the Airai Sanitation project segment.
It is not certain what impact the freezing of ADB KASP loan payments will have any pending ADB loan proposals. The Resolution was adopted by the Senate on June 10th and is pending House action. (By: L.N. Reklai)

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