Toribiong told reporters that he is retaining the services of Attorney General Ernestine Rengiil and will no longer interfere in the court’s order.
“Let the court takes its course. I thought the Special Prosecutor can handle the case but the court made a ruling” Toribiong said.
Last week, Toribiong ordered the OAG to hand over the prosecution of the money laundering case to Special Prosecutor Michael Copeland citing potential conflict of interest.
In Toribiong’s letter to Rengiil in ordering the transfer, he cited the court order to justify the directive.
In the letter to the AG, Toribiong said his decision follows the order of Associate Justice Alexandra Foster dismissing the disqualification case against the OAG.
The president said in the court order, it was stated that he has the authority to remove the Attorney General and to appoint someone else.
However on Tuesday he cited the same court order as a reason in retracting the transfer directive.
He said that he wanted to protect the integrity of the OAG in ordering the transfer.
The president also admitted that he has previously warned the OAG about the potential conflict of interest.
Copeland also decided yesterday to distance himself from the prosecution of the case.
“We are independent office. Now that it is clear what is transpiring, I am not inclined to get my office involved in a dispute between the Office of the Attorney General and the President. It is up to the President to resolve the AG’s insubordination in whatever manner he deems appropriate,” Copeland said in a statement.
Copeland said he will no longer file a brief on the case.
Earlier, using the president’s letter, Copeland filed a motion to substitute the OAG as counsel for the Republic of Palau.
Copeland also appeared in the Jan. 22, arraignment. His motion was however denied by Foster who ruled that OAG will be prosecuting the case.
He added that “and if in the future it is determined that this case would be better prosecuted by an independent counsel I recommend they transfer the case to a private attorney.”
Asked for comment on Copeland’s statement, the OAG said it did not defy the president’s order.
“The Court ruled on the Defendants’ Motions to Disqualify the Attorney General’s Office and found that there is no conflict preventing the OAG from further prosecuting the matter. The issue was handled appropriately through the judicial process,” the OAG statement said.
The statement said that contrary to “Mr. Copeland’s assertion that he made an appearance in the matter as a “courtesy” to the President, Mr. Copeland first attempted to insert himself in this matter back in November 2009 before charges were even filed against the defendants.”
The OAG said Copeland’s attempts to insert himself in the matter were properly ignored by the OAG.
“The OAG is more than qualified to prosecute the matter and has a long and consistent record of representing the Republic in a fair, judicious and professional manner,” the statement stated.
It further added that “there is no dispute between the OAG and the Office of the President. The OAG did not defy the President and was not insubordinate. The OAG’s decision to remain in the matter is consistent and keeping with the court’s reasoned ruling of January 19, 2010.”


