KOROR (Island Times/Pacnews) — Former Angaur Governor Steven Salii has been charged with two felony offences — misconduct in public office and first-degree theft — along with one misdemeanor count related to audit violations in connection with the handling of Japan Grassroots Grant funds intended for a Palau transportation project in Angaur State.
Court documents show the charges were filed May 13 and stem from the remaining balance of a 2023 grant agreement between Angaur State and the Government of Japan.
The grant provided $211,500 for the exclusive purpose of purchasing a boat and trailer to transport people between Angaur and Koror.
According to charging documents, an account for the grant funds was opened at Bank of Hawaii on March 16, 2023, under Angaur State, with Salii and Administrator Collector Viviasha K. Moses listed as authorized signers.
In June 2023, Angaur State requested and received approval from the Embassy of Japan to withdraw $124,806.40 to pay NECO Yamaha for the purchase of the boat.
Court records state that Angaur later requested an extension for completion of the project due to increased material costs delaying the work.
The extension request was also approved, leaving a remaining balance of $86,693.60 in the account.
Prosecutors allege that between September 6, 2023, and December 4, 2024, Salii issued 11 checks totaling $85,512 from the account. The final check, issued December 4, withdrew the remaining balance before the account was closed, the prosecution said.
According to a police report included in the case, Salii admitted removing the funds from the Bank of Hawaii account but stated that he deposited the money into an Angaur State account at Bank of Guam and used it to support Angaur State operations.
The report further states that Salii admitted one check for $2,000 was made payable to his private company, Turf Tenders.
An audit conducted by the Office of the Public Auditor found that when auditors traveled to Angaur to review the project, they found no records showing the purchase of a boat using the Japan grant funds. Auditors also reported the absence of state records documenting disbursements and expenditures for fiscal years 2023 and 2024.
The investigation began after newly elected Angaur Governor Natus Misech reported possible violations of state and national laws in February 2025, including alleged financial misconduct involving the Japan Grassroots Grant funds.
Misconduct in public office and first-degree theft are both Class B felonies under Palau law. If convicted, each offence carries a possible prison sentence of one to 10 years and an optional fine of up to $25,000.
The misdemeanor charge of failure to make proper audit — making false audit reports or failing to produce documents or information — carries a potential penalty of up to three months imprisonment and a fine of up to $1,000 if convicted.
