KOROR (Island Times/Pacnews) — The speaker of the Palau House of Delegates, Sabino Anastacio, has been charged with misconduct in public office and violation of the Unified Tax Act on Aug. 4 in the trial division of the Palau Supreme Court.
But he has also signed a deferred prosecution agreement with the Office of the Special Prosecutor. His case will be dismissed if he meets the agreement’s conditions within a one-year time frame
Misconduct in public office is a Class B felony with a penalty of up to 10 years’ imprisonment and a fine of not less than $25,000 upon conviction. Violation of the Unified Tax Act is a misdemeanor charge with a penalty of up to one-year imprisonment or a fine of not more than $1,000.
The case filed by the Office of the Special Prosecutor alleged that Speaker Anastacio, “under the color of office,” failed to obtain a business license in 2015 while engaging in business.
According to court documents, Anastacio and his wife, Kuye Belelai, entered into land lease agreements with a Chinese national, Qin Zhong, aka Selina Zhong, leasing three different lots in Aimeliik for a total of $3.27 million without obtaining a business license.
The three lots included a land known as Yilchutem, which was leased for $1.865 million; 125,000 square meters of mangrove area in Ngchemiangel, Aimeliik, next to the IPSECO power plant leased for $1.41 million; and 6,120 square meters of mangrove area also near IPSECO for $734.40 per year.
These lots were for the proposed Wyndham Global Resort in Ngchemiangel, a hamlet of Aimeliik State. Once constructed, the resort will have 400 villas and 132 hotel guest rooms. Sea Sky International Development Group, a Global International Development Group subsidiary from the People’s Republic of China, is the project developer.
The project held a groundbreaking ceremony in July 2018, but it has yet to start.
In his financial disclosure statement, Anastacio reported $3 million income from his real estate leases, but failed to pay taxes for it, which is a violation of the Unified Tax Act, the Office of the Special Prosecutor said.
It also stated that Anastacio has agreed to a deferred prosecution agreement. The prosecution is deferred for one year, and the defendant waives his right to a speedy trial. He will also obtain a business license, and will start paying outstanding taxes on the $3.27 million he received in 2015.
The case will be dismissed if Anastacio meets the agreement’s conditions within a one-year time frame. If he fails, the Office of the Special Prosecution will resume prosecution as if it was never deferred.
Sabino Anastacio
