OPA seeks meeting with senators to discuss PPUC investigation and audit

The Public Auditor’s Office is seeking a meeting with the Senate Committee on Energy, Public Utilities and Telecommunications to discuss its request for an investigation into the Palau Public Utilities Corporation (PPUC).

The committee wants to investigate PPUC because the Senate has banned PPUC from paying government grants to the Asian Development Bank (ADB).

The committee also wants to investigate inconsistencies between PPUC’s financial statements and Solar Pacific’s documents.

PPUC also failed to demonstrate the long-term value of PPUC’s contractual obligations or that PPUC overcharged its customers.

OPA Acting Director Saturnino Tewid responded that since the committee wants to conduct an audit and investigation, it would be best to meet to discuss the detailed request.

Earlier, the PPUC said the Palau Senate is investigating potential financial difficulties at the Palau Public Utilities Corporation (PPUC) following reports that the company could be facing bankruptcy.

A press release from the Senate on May 26, 2024 stated that they were reviewing reports and statements regarding the financial status of the PPUC.

“The Senate seeks the full cooperation of all interested parties, including the PPUC and the Palau Energy Authority (PEA), who may have information regarding PPUC operations and related issues,” the release stated.

On May 1, 2024, PPUC CEO Frank Kyota sent a letter to both houses of the legislature requesting specific policy changes. These changes include repealing a provision in Section 37 of the Palau National Code (PNC) that restricts PPUC from charging water fees to residents of outlying states. Kyota argued that this change would allow PPUC to “recover the costs of providing that service” and generate revenue for water system projects in those areas.

The letter also requested five additional amendments, including the allocation of $5 million from the Pristine Paradise Environmental Fee (PPEF) for water infrastructure and water quality improvements in Kayangol, Peleliu and Angar. (By Bernadette Carreón)

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