By Nazario Rodriguez Jr.
Horizon news staff

The five-page preliminary report submitted by Delegate Kerai Mariur to former Speaker Augustine Mesebeluu a day before the April 10 reorganization of the House of Delegates discussed numerous onerous deals that also involved no less than President Remengesau as reporters got hold of a copy only this week.
The report was a result of an earlier investigation conducted by the House committee on Judiciary and Governmental Affairs formerly chaired by Mariur, who then explained that the constitution empowers the OEK to levy and collect taxes, duties and excises.
This he said shall be uniformly applied throughout the nation – to borrow money on the credit of the national government to finance public programs or to settle public debt, to provide for the general welfare, peace and security.
Because of this, the committee conducted several committee hearings with ministers and directors, particularly on the Economic Stimulus Project Grants from Taiwan.
The report said in part that documents received from the Ministry of Finance stated that as of Sept. 30, 2006, the government of Palau has received $11,108.000 from Taiwan for Economic Stimulus Projects only.
Accordingly, this is separate and distinct from other grants and technical assistance from Taiwan.
The committee, the report noted, also invited other officials of the MOF to explained some of the processes about these grants.
In his report, Mariur noted some other issues or problems encountered by JGA committee:
It found discrepancies between the submitted documents, the unaudited reports and the audit reports by Deloitte & Touch, therefore, the Committee wishes to pursue this matter further with the MOF. The Committee said that the economic stimulus funds and all grants by Taiwan are not included in the independent auditor’s report performed annually.
It found discrepancies between the monthly reports, quarterly reports and annual audit reports and that there were some monthly reports that would show a particular funding while in the quarterly report it would not and that the reporting are inconsistent and there is no final "reconciliation" or a final report by the MOF that would explain the inconsistencies or lck thereof of some reporting information.
It found that there are several projects that were through appropriation were funded, but however, later to be funded by Taiwan grants such as the Melekeok State Capitol Building which local revenues were appropriated, $250,000, to build the building, however during the ribbon cutting ceremony it was revealed that Taiwan funds, $350,000 funded the completion of the building. The report noted that the committee could not get a clear answers from Director Marino Rechesengel with regards to this expenditure. It said that another example of double funding or appropriations but the later funded by outside grants from Taiwan to the aqua-culture project in Ngatpang, while the managers of the project report that only funding from FAO and other sources have been used for the project but know no economic stimulus funding.
It found that it is disturbing that the MOF does not follow the constitutional provision under Art. XII, Section 5 that "foreign" aid must be distributed in a "fair and equitable manner based on needs and population. The report specified more on this issue.
The report also said that it foundextemely concerned with Dir. Rechesengel’s testimony that reported grant assistance on MOF monthly reports to the OEK, pursuant to law are nothing more than "ink on paper" and that even through reported the monies are not here, nor are the distribution of the monies well defined. The report said that this is a fine example of misrepresentation and acts of fraud. Mariur asked why would anyone report that cannot be accounted for. The report said that Rechesengel specifically stated in his testimony that the $2.5 million reported as received for September 2006 is really not there, it’s not writing on paper but no money. "furtheremore, JGA Committee is also troubled by Director Rechesengel’s testimony that the Ministry of finance is audited every year by the "single audit" funded by the Department of Interior, however, the Committee has reviewed the audits and the audits do not cover ROC, Taiwan grants or economic stimulus funds."
The JGA Committee also noted that it has also received documents from Ruth Wong, Controller, MOF that the Republic has received $27.2 million from Taiwan. "these grants are "grants other than economic stimulus" grants. However, in her submission, there were no documents showing receipt of grants for fiscal year 2003, the Committee would like to further time to inquire on this matter."
7. Finally, the report noted that "on another reporting requirement, in February 2007, the JGA Committee received the unaudited quarterly reports by the Director of the National Treasury, in the report it stated that during the first quarter of fiscal year 2006, the President received $200,000 from Taiwan as "grants" for "President Expenses." The JGA Committee said that "it finds this highly questionable and grounds for criminal prosecution – bribery." Mariur in his report said that the Committee would like to further investigate this matter because as stated above, the President is empowered to spend what is "appropriated" and for his Office, he is appropriated $38,000 for his "Official Expenses" therefore, any amount beyond that would be considered outside of appropriation and unlawful.