Harley was one of the guests during President Remengesau’s press conference Wednesday to update the public on the status of the investigation into PSB’s failure.
Harley said the bank is in trouble regardless of the withdrawals made prior to its closure.He explained during the press conference that cases that have stemmed from the investigation cannot be discussed pending trial.Harley said the OSB deposits were not managed properly which did not happen overnight.Harley said that the Office of the Independent Counsel is in contact with the lawyer of former PSB president Tim Taunton although the former bank official is still nowhere to be found.Harley said although his office lack the resources to track Taunton’s movement, the ex-official is said to be willing to make a statement on the PSB’s closure.Harley added that Taunton counsel’s has previously agreed to cooperate with the investigation.Harley said his office is working on having Taunton’s assets frozen which will need the latter’s consent.He also said that Taunton is believed to have moved out of New Zealand has been evading service of court processes.The Financial Institution Commission (FIC) said the basis for closing the bank in 2006 was due to series of events including bad financial management.The FIC explained that it was not able to run after PSB immediately because it does not have enough teeth to order a closure of the bank.Presidential candidate however said that he is not satisfied with the FIC’s explanation saying the commission already had enough teeth prompting it to order the closure of Melekeok Bank and Palau BankHarley said Taunton used to sit in the board at FIC thus he will not question his own management of the bank.The president said that the investigation should lead to netting the “big fishes and not the small fries” because “it was the big fishes that should be blamed for the bank’s failure.”Remengesau told reporters that he will renew Harley’s contract because he is satisfied with the result of the review of Harley’s performance.Harley said one of the goals of the probe is for the PSB depositors to recover the money lost during its closure adding that it will include the counsel’s expenditures during the investigation
