By Nazario Rodriguez Jr.
Horizon news staff

Peleliu State Governor Jackson Ngiraingas this week has threatened to file a lawsuit against Pacific Savings Bank receiver Kaleb Udui Jr. if the latter fails to rescind his decision to pay out any fund to the PSB depositors using the $3.3 million fund from Taiwan and two other demands.
Earlier Udui has announced to start with the $2,000 pay out scheme starting March 13.
In his letter to Udui last Tuesday Feb. 20, Ngiraingas also demanded that the PSB receiver must provide to Peleliu State Government copies of documents that are now considered public documents related to the status of the Taiwan loan including copy of the Loan Agreement executed recently between Udui and Taiwan Government.
Ngiraingas other demand is that the receiver must provide Peleliu State detailed plan on how to distribute the $3.3 million "loan or grant" to all depositors and how to pay back the same amount to the National Government of Palau without using proceeds from PSB assets and fixed loans.
Ngiraingas gave Udui until Feb. 28 to provide information on these matters.
Ngiraingas wrote that the government and people of Peleliu are desperate to get their money back and happy to know that they will get 100 percent including principal and interest.
But he said that they don’t want to be a party to nor the receiving-end of any illegal activities or violation of the law, "for the purpose of fulfilling President Remengesau’s promise that he will find money to pay the depositors and at the same time at the expense of other depositors who might not get 100 percent of their money."
Ngiraingas recalled that Senator Diaz earlier stated very clearly during a Senate committee hearing that the Taiwan loan would be paid back to the government of Palau using the depositors’ deposits.
These, he said, include proceeds from assets of PSB after the Udui paid out 100 percent funds to churches, schools and state governments.
Ngiraingas said that Diaz used Peleliu as an example, that if Peleliu had $200,000 deposits and the receiver paid Peleliu State that amount with the Taiwan money, the receiver may use the same paid out amount in PSB depositor’s account to offset the Taiwan loan.
Ngiraingas asked what depositors’ money in PSB would the receiver is going to use to offset the Taiwan loan.
"We all know when PSB closed down all the depositors’ money had disappeared zero balance. And we all know that the law only allows you to sell the bank’s assets and pay the depositors, not use the proceeds to pay any unsecured loans you as receiver may not be able to pay back," Ngiraingas noted in is letter to Udui.
The Governor asked how sure Udui as receiver ready to shoulder the heavy burden if he is unable to pay back the loan with no interests to the government as the $3.3 million will be paid to the Republic.
This, he said, become Stimulus Grant to be used by the government for projects as explained by Senator Diaz.
Ngiraingas made assurances that the other Governors of the 16 states will demand that portions of the Taiwan loan will be equally divided among them for various important projects.
"Are you sure you are ready to face barrage of lawsuits against you as yourself and as Receiver for failure to pay the full amount of $3.3 million to the Government of Palau?" Ngiraingas asked Udui in his letter to him.