PIP in a letter said that it has a business dealings with UKIHK over the past four years on an agreement to sublease a land on Angaur as part of the Solaris City Project to develop a 500 condominium residences known as Pacific Views in the state.
The firm claimed that the relationship broke down in 2009 when it claimed that the UKIHK, a company handled by Palau’s honorary consul to Malaysia Lord Morrison Davidson acted illegally in subleasing 10 acres of Angaur land in the amount of $404,000.
Mr. RS Cocks board of directors of the firm has sought the help of the Attorney General’s Office, President Johnson Toribiong and the members of the Olbii Era Kelulau.
“We are seeking redress for alleged illegal activities by UKIHL in that it sold PIPL 10 acres of Angaur land and attempted to sell PIPL a further 10 acres of Angaur land when, in fact, it had no right to the land or to be engaged in such activities without appropriate certification by the Republic of Palau,” the letter said.
The firm said that the total sum of their claim is $1.1 million and said that some Directors of PIPL intend to visit Palau in the near future to discuss the matter with the high officials.
In the letter the firm was promised that the project will be in full swing by 2009, however as of this date the project has not commenced.
The firm also claimed in the letter that Davidson “may have operated other dubious practices of this nature in the past.”
“Please understand that in addition to seeking help resolve our legal dispute with UKHIL we feel also honor-bound to bring to your attention our findings in relation to Davidson as they may prove of value in avoiding embarrassment to Palau,” the letter said.
Henry figured in the issue as the broker between UKHIL and the Angaur clans in the lease of lands.
President Johnson Toribiong this week finally decided to take action on the matter by creating a task force to look into the spat between Davidson and Palau Ambassador to Taiwan Jackson Henry until a court has decided on the issue.
Henry’s involvement in the issue was the broker between UKHIL and the Angaur clans in the lease of lands.
The task force will determine the true nature of the case and from the findings he will decide whether to relieve one of them.
Davidson has accused Henry of receiving money on behalf of the Angaur Clans of their land leased to UK-IHL.
Davidson accused Henry for possible breach of fiduciary to the Angaur Clans and for alleged theft of funds paid by UK-IHL to the Angaur Clans.
Henry meanwhile denied the claims. Both Davidson and Henry challenged each other to prove claims of wrongdoings.
Davidson said that he has evidence that Henry received $200,000 from the project.
Henry said that the contract with the Angaur landowners called for only $100,000 when UKIHL obtains its Foreign Investment Approval Certificate.
Henry said that Davidson is violating the ethics of professional conduct by smearing a fellow diplomat and spreading negative publicity against him.
UK Holdings is the company involved in the planned ambitious Nautilus Project in Peleliu State. It has appealed to government, tourism and business organizations to support the multi-billion infrastructure.
The company has been trying to lobby its project during the Remengesau administration but the former president did not support the project wary of its ambitious claims of investments.
As early as 2006, the firm has been offering to Palau its outlandish project which it claimed would include an airport , 3,000 hotel rooms, villas, recreation facilities, a golf course, a casino, and a marina.
The project has been advocated by former Peleliu Governor Jackson Ngiraingas and now Toribiong’s Minister of Public Infrastructure, Industries and Commerce.
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