“We believe that this legislation flawed in many areas,” said the two senators in the letter.
First, according to the senators, the bill allows a potential casino operator to offer the amount of taxes it will be willing to pay to Palau should it win the bidding process. “This conflicts directly with the Olbiil Era Kelulau’s (OEK) constitutional authority to regulate taxes,” the two senators said.
Second, they argued that the structure of the bill encourages corruption. “Under the Bill, a five-member commission will deliberate over bids under a non-public process, as opposed to 29 members of the OEK, who operate under public scrutiny. The commission’s non-public deliberation could lead to price fixing.”
Third, the senators are concerned about the bill being structured in such a way that the gaming commission is required to select one of the proposals submitted by the bidding casinos. “There is no option of the commission to reject all the bids offered, should none of them provide Palau with sufficient tax revenues and other benefits. Thus, the commission would be required to select the “best” option of the submitted proposals, even if none of them meet the standard of ‘serving the interests of the people of Palau,’” the letter stated.
Fourth, the bill establishes the members of the commission: two Presidential appointees, two Senate appointees, two House of Delegates appointees, and one Governor’s Association appointee. “This is potentially problematic because it is inconsistent with the usual appointment and confirmation procedures established by the Palau Constitution (i.e. President appoints, Senate confirms),” said the two senators in the letter.
The senators urge the committee to consider tabling the legislation as the majority of the people have spoken through the President who vetoed the first bill. “If you must have a referendum, we would suggest alternative legislation and pose the question to the public whether they support casinos or not,” they said.
“The people elected us here to do a job and we should not delegate the authority away.We are here to serve the people,” said the two Senators.
