“There is an investigation but we are not too clear on what is being investigated,” Udui said.
Last week, the Senate sent a second subpoena to Udui asking him to submit pertinent documents on the policy decisions of the bank.
Udui said some of the documents asked were already given to the Senate in previous subpoenas, the rest he said will be submitted before the deadline.
Udui welcomed an oversight hearing but it will be a better policy if an even broader oversight system will be put in place to make sure that the bank is doing its job properly.
He said that currently, NDBP is not regulated under the Financial Institution Commission (FIC).
Investigation he said can be conducted by the FIC or the Public Auditor’s Office.
He noted that oversight hearings sought by the Senate is a good policy but it should be made clear that it will not be done to dictate on the bank’s activities.
Udui also explained the loan they recently granted to a Foreign Investment Board –registered company.
He said the decision of the board was based on NDBP’s mission to promote the economy of Palau and especially high-end tourism.
The $3million loan was given to PHC, property developer of the site where the Amman Resort is building their new resort-type hotel.
Udui explained that the loan was not given to Amman Resort but to the developer, though non-Palauan citizens, the owners are duly-registered company in Palau.
Ealier a subpoena duces tecum was served Udui, president of NDBP and PSB receivership, asked him to submit the supporting and pertinent documents regarding the agencies.
The purpose of the first subpoena was because the senators want to find out what is going on in the NDBP and the receivership.
In the subpoena, the senators sought copies of the names of the persons, entities which have outstanding loans with the NDBP.
The subpoena also asked for the name of all employees and members of Board of Directors of NDBP and name of all non-Palauan citizens or corporations who have been given loans by the bank.
The senators also want to find out the interest rates being assessed on loans.
The subpoena also included documents on who appointed Udui as receiver, his compensation and benefits as NDBP president and expenses as receiver.
