By Bernadette H. Carreon
Horizon news staff

Del. Joel Toribiong questioned the inaction of the Foreign Investment Board in connection with the Foreign Investment Approval Certificate issued on a foreign national operating taekwondo classes adding that the law has loopholes which needs to be corrected.
The FIB earlier said that Palau Island Taekwondo did not violate any law.
FIB chairman Regina Mesebeluu in her response to Toribiong said that a check with the tax authorities, labor and immigration.
Mesebeluu said that a check from these government agencies concludes that none of the regulations prohibit non-Palauans working in Palau from investing in businesses.
Mesebeluu said that taxes have been paid by Palau Island Taekwondo by the investor in a timely fashion since the issuance of the FIAC.
"The law prohibiting transfers from one employee to another does not prohibit change of status from that of an employee to that of an investor. Hence, the FIB believes that the FIAC was properly granted. If the employer so desires, the FIB will be happy to meet with her and she can explain her concerns to the board," Mesebeluu said.
Toribiong however said that because of the incident, he is concerned about the direction of the country’s foreign investment policy.
"While all necessary requirements have been fulfilled, there seems to be blatant violation in the instant situation, I feel that the spirit of the law has been forgotten. As we witness the increase of foreign investment and development in our nation, it is crucial that we protect the local businesses," Toribiong said.
He said that FIB’s action on PIT could cause the decay on the mechanism for the protection of the local businesses in the country.
He said because of this incident, there are loopholes in the law that it is necessary to amend it.
Toribiong asked Mesebeluu to give her inputs on the future changes or additions to the current law.