House Bill 8-3-1, HD3, SD5, CD1 creates the Foreign Investment Authority which will advise and assist the promotion and encouragement of foreign investment in Palau.
Toribiong’s bill wants to abolish the existing Foreign Investment Board (FIB) and instead administrative responsibilities of the current board be placed with Registrar of Corporations within the Attorney General’s Office.Both the Senate and the House disagreed with the president that the While the Registrar of Corporations will still be responsible for issuing corporate charters for foreign-owned corporations, the authority will have the finally approval power for these foreign businesses.The authority’s regulatory powers however shall be restricted. President Toribiong told reporters earlier that the aim of the measure is to establish a less restrictive foreign investment licensing procedure, allowing foreign investors to move quickly through the approval process that to be administered by the Registrar of Corporations. He said that an existence of a board will make the investment licensing “discretionary.”He said when a board exist, it makes it political. The FIA, according to the bill will be working with the ministry to invite, consider, develop and recommend public policies, programs and strategies to the President and the OEK. The authority will also be tasked with reviewing and making recommendations to the President and to the OEK changes in Palau’s laws and act as a liaison between the government and the foreign investors.It is also the duty of the FIA to review and evaluate the Palau Foreign Investment charters and issue approval certificates.The issuance of investor’s visa, according to the bill will not be the responsibility of the FIA, instead of the Bureau of Immigration.The FIA will be composed of five appointed members who shall be Palauan citizens residing in Palau and who have sufficient knowledge, experience and expertise in the areas of business policy affairs or related fields to efficiently and effectively discharge the functions of the FIA under this chapter.The members will be appointed by the President with the advice and consent of the Senate of the Olbiil Era Kelulau, and may be removed by the President only for cause.The term of office for members of the FIA will be two years from the date of their respective appointments. Any member may be reappointed for additional terms.
