to applicants who, based on their applications, were denied approval to be issued Foreign Investment Approval Certificates (FIAC’s).
Responding to Koshiba’s comments, the chairman of FIB, George Sugiyama, had written a letter to Koshiba to verify the comments made. Moreover, he had written that FIB was not aware of any FIAC applications that were rejected without appropriate notice and asked that Koshiba furnish the names of individuals or businesses whose applications were not looked into pursuant to established statutes.In an interview with Koshiba yesterday, he said that his FIB comments to the media last week are legitimate and can be easily confirmed; however, they were not directed at the present FIB members. Koshiba named individuals – past FIB members – who received bribes of as much as $1,000.00 to process specific FIAC applications. He said that past FIB track record is riddled with corruption; and it is the basis for the comments he made.According to Koshiba, foreign investment in Palau – at least the application process – is unfriendly, wearisome, and tends to ward off potential investors; and should be changed.“FIB needs to be dissolved gradually; and it has to be done through legislation,” he said. “It duties should be delegated to the Ministry of Commerce and Trade.”In addition, he said, Palau’s foreign investment policies should adopt and implement the “Singapore Model” and entice investment into the country.According to Sugiyama, he has heard of the alleged bribes; and acknowledges that if the allegations are true, they would have happened prior to the present FIB; and he has no knowledge or records of their validity.In addition, Sugiyama said that FIB works diligently and with integrity. It follows and implements procedures mandated in Title 28 of the Palau National Code (PNC). “All applications are processed pursuant to section 108 of 28 PNC,” he said, “the current FIB has not deviated from procedures and has not failed in its mandated duties.
