By Nazario Rodriguez Jr.
Horizon news staff

In an effort to get a clearer picture of the process of economic stimulus packages, the House Committee on Judiciary and Governmental Affairs started investigating on the funds expended by the national government for various Capital Improvement Projects.
The Committee, chaired by Ngarchelong Delegate Kerai Mariur, noted in a statement that as of Sept. 30, 2005, Palau has received from the United States Government alone Compact Funds amounting to $285 million, $70 million for the COFA trust fund and $5 million for the Capitol Complex.
These and other financial assistance from various agencies from the US and all grant aid from Japan for major infrastructure development, the Committee said, are highly appreciated.
The committee also appreciates that these have restrictions and had been carefully monitored but it said that it does not fully understand the application and award process for the economic stimulus packages received from Taiwan.
The committee said that since fiscal year 2001, some states have received $1.6 million while others like Ngchesar received $280,00 and Sonsorol $175,000 for economic stimulus packages.
The Committee said that the HOD questions the award process, "who determines the economic development of a sate."
It asked what areas of economic aspect within each state need to be stimulated and who will decide and does the application and the award process depend on state and "national relationship."
The committee is also questioning if the manner of distribution for the economic stimulus funds a fair and equitable based on the needs and population of each state.
It also wants to know what factors would determine the need and the priorities of state programs.
The committee said that based on these concerns, it has conducted a hearing with Minister of Finance Elbuchel Sadang, who provided documents that showed that over $11 million had been received from Taiwan since 2001.
The Committee said that as presented by Min. Sadang, "some financial reports submitted to the OEK contain flaws, some do not report funds from economic stimulus packages, while others state otherwise."
It said that the documents showed there are no copies of actual award letters from the Grantor to the Republic regarding Economic Stimulus Packages.
The Committee also said that that it is concerned with Dollar Diplomacy, the use of dollars by foreign sources to affect local politics, which it said "a danger that maybe the Republic is facing with the Republic of China, Taiwan."
The committee explained that laws were enacted to establish Performance Budgeting and Transparency in the Government (RPPL 6-11), which it said further spurns the Committee to seek answers for its various concerns.
"Additionally, as Compact Funds are expended and Year 2009 approaches, the Republic needs to carefully examine its spending habits and re-asses its priorities," the statement said.