Toribiong in a memorandum, designated Werner the Independent Counsel and will no longer serve in an acting capacity. This was Toribiong’s response to Special Prosecutor’s concerns over Werner’s appointment as acting Independent Counsel.
In a letter dated Sept. 17, to Werner, Copeland refused to immediately transfer all assets and work product of the Office of the Independent Counsel (OIC) saying that he is the current Independent Counsel and would be needing official correspondence from the president relieving him of his duties.“You should be advised that I am in fact currently the Independent Counsel. Obviously, I will need to be removed from the position before anyone else can occupy it,” Copeland said.He said that on Feb.1, 2009, Toribiong appointed him to the position. However, a letter dated January 26, 2009 by former Independent Counsel Lewis Harley stated “ as discussed with Pres. Toribiong you are being appointed to assume the responsibilities of the Independent Counsel following my resignation from office which will be effective Feb. 1, 2009 .”However, Werner said Copeland identified himself as acting Independent Counsel in documents filed in court in connection with the PSB cases. Copeland in the letter to Werner said that as a goodwill gesture he will be tendering his resignation to the president.In return, the president in a letter to Copeland on Friday accepted Copeland’s resignation and directed him to transfer all assets and work product to Werner.“I hereby relieve you of your duties and responsibilities as the custodian of the assets and work product of the Office of the Independent Counsel and direct that you forthwith transfer the same to the Office of the Attorney General,” Toribiong said.Toribiong in his letter to Copeland said that his appointment of Werner as Independent Counsel is due to his desire that the PSB failure be thoroughly investigated and prosecute those who were involved in it.“A great deal of time has elapsed since the collapse, and there is a growing clamor in the Palauan community that action be taken, particularly from the depositors who lost their life savings,” Toribiong said.Toribiong added in the letter that he is distressed over the fact that there appears to be a conflict between Copeland and the Attorney General’s Office over the matter when the focus of both agencies should be investigation and prosecution of violations of the laws in Palau.“The additional fact that the discord between your office and that of the Attorney General has become public sullies and tends to undermine, rightfully and wrongfully, the public’s confidence in the integrity of your respective offices and that of the government as a whole. All of us are in government to serve the people, and that should be our principal goal, nothing less , nothing more,” Toribiong said in a letter to Copeland. No conflict of interestCopeland also stated that Werner has a potential conflict of interest if he assumes the position which is through Attorney General Ernestine Rengiil’s alleged conflict because she was formerly the attorney for one of the primary defendants John De Vivo.“The ethical problem I am concerned about in this case may be summarized this way: Attorney General Rengiil represented one of the primary defendants of the PSB matter. Thereafter she became the Attorney General for the Republic of Palau. Normally that would disqualify the entire Attorney General‘s Office (including yourself) from handling any of the PSB cases. But if AG Rengiil was carefully screened away from the cases, then her disqualification would not be imputed to you and you could prosecute the PSB cases without ethical concerns,” Copeland said.Werner in an interview said that Rengiil’s former client De Vivo is “can no longer be a target in the investigation.”Werner said DeVivo, former PSB’s Vice President entered into a settlement agreement with the former IC Lewis Harley and as a result of that settlement, civil and criminal cases against him were dismissed with prejudice.Werner said because De Vivo is no longer a subject of the investigation, therefore there is no conflict of interest with him prosecuting the case.“Copeland as a former Independent Counsel should know about this, if he has reviewed the file,” Werner said.“We do not take lightly the conflict of interest issue. We looked at it thoroughly and I have hired an independent lawyer to analyze it as well. There is no conflict of interest,” Werner stated.He said that earlier the AG’s Office did request for files regarding the PSB case to determine the progress of the case.Werner said Copeland did not object at that time. The PSB was placed under receivership in Nov. 2006.
