handling of the Pacific Savings Bank (PSB) investigation and the representation of the receiver by the Attorney General’s Office (AGO).
In a letter to President Remengesau, Harley explained the reasons why he sought the dismissal of some of the cases previously filed by the AGO against former PSB officials.Harley cited some of his office findings regarding the previous handling of the cases.He said in his letter to the president that “searches were conducted without warrants rendering as inadmissible evidence collected.”Harley added that listing of what were taken during the search was not properly provided to the court or the subject of the search.The counsel also noted that there was an improper handling of a key prosecution witness giving the appearance of “coercion” and without proper disclosures to defense counsel as required by law.He also added that the allegations by an Assistant Attorney General (AAG) regarding the destruction of documents in the presence of witnesses.Another finding he said came out was that the AGO failed to file proper responses in the civil suit against the receiver by the Pension Fund technically rendering the receiver in his capacity and individually in default for a sum in excess of $1 million.’This has hampered the investigation and my ability to file certain cases. Namely major criminal offenses could not be made involving evidence wrongfully seized. Additionally, we were required to take extraordinary steps to secure evidence the mutual legal assistance process which is time consuming,” Harley said.He said that defense counsels were aware of the move and all of the attorneys involved in the cases.Harley added that he is also on the verge of completing a major settlement involving the $15 million in depositors for which negotiations are pending.He said that the case only involved about $3,000 in restitution.Earlier President Remengesau in his letter to Harley said that he is concerned about the dismissal of one of the cases.“The Palauan people, I think, are wondering why Palau is giving your office hundreds of thousands of dollars to dismiss cases- cases which are supported by evidence and in one instance by a confession. Although I recognize that you personally filed one case, I am concerned about its fate, especially considering that you already asked the court topostpone the trial at least once,” Remengesau said.Remengesau said that he will be meeting Harley on Wednesday.In Harley’s letter to the president he said that he kept certain issues in Palau out of public view particularly because of the political environment.
