President Threatens Government Shutdown

In a letter, discount Palau President Johnson Toribiong has threatened the suspension of government services for the Bureaus of Water and Sewer, medications Health, more about Aviation, Land and Survey, Ministry of Education and more unless the 2012 supplemental budget is passed.

The outstanding issue for the 2012 supplemental budget is unauthorized over expenditures for 2011.  The executive branch claims they were necessary and the majority of the Senate has accepted the financial records.  The House of Delegates on the other hand wants to see the 2011 audit to verify expenses before authorizing them.
The president insists on the budget being passed, including the 2011 over expenditures, by 4:30p on Tuesday or suspensions will begin.
The latest report has indicated that the House and Executive Branch have reached an understanding to not include the 2011 over expenditures in the 2012 Supplemental budget.
OTV will continue to update this breaking story.
This is the letter from the President:
 
July 22, 2012
 
Serial No. 12-2105
 
The Honorable Noah Idechong
Speaker of the House of Delegates
Eighth Olbiil Era Kelulau
 
The Honorable Mlib Tmetuchl
President of the Senate
Eighth Olbiil Era Kelulau
 
Gentlemen:
I write to follow up on my previous correspondence urging you to promptly enact the FY2012 Supplemental Budget.  In Section 1 of RPPL No. 8-40, the Olbiil Era Kelulau specifically recognized the existence of over expenditures of the National Government for FY 2011 and that the FY 2012 Budget did not fully reflect the actual budget needs of the National Government for FY 2012.
 
As part of the compromise that was reached to enable the passage of RPPL No. 8-40, the Olbiil Era Kelulau promised to promptly consider my supplemental budget request for Fiscal Year 2012. Regretfully, the Olbiil Era Kelulau has failed to keep its promise. It has been over three months now since I submitted my supplemental budget, yet no bill has reached my desk.
 
By this letter I am providing notice that due to the Olbiil Era Kelulau’s inaction on my supplemental budget request several government budget activities are already overdrawn and no longer have budget authority. Legally, those activities and the offices responsible for carrying them out have to be closed. However, because of the serious and extremely detrimental impact that such closure will have on the Palauan people, environment, and our economy, I will wait until 4:30 p.m. Tuesday to take action, with the hope that the Olbiil Era Kelulau will be able to complete its work and send an acceptable supplemental budget to me for my signature.
 
The failure of the Olbiil Era Kelulau to act by the date and time set forth above will adversely affect the following budget activities: The Bureau of Health Administration will have to cease activities. Electricity to the hospital will have to be rationed and possibly cut since the funding to pay for electricity has already been depleted.
 
The Bureau of Aviation, specifically including airport operations and the Airport Rescue and Firefighters, will have to cease operations. This means that the airport will have to be closed as the U. S. FAA will not permit flight operations to continue in such circumstances.
 
The Bureau of Water and Sewer operations and the Division of Water will have to cease operations. This will affect the water treatment plant in Airai and the delivery of water to Airai and Koror, as well as the delivery of water to the residents of all the outlying states since the persons working in each of those states to deliver water will have to be laid off and will bring the sewer system to cease its operations. Most seriously, the sewer system will have to shut down.
 
This will have the obvious dire consequences and severely affect our environment and tourism.
The land fill operation at M-Dock will have to cease activities. At some point in the very near future this means that the land fill will have to stop accepting trash.
 
The Capitol Complex will have to shut down and its maintenance cease. This will mean that all executive, legislative and judicial activities that take place at the Capitol will have to cease operations. The Bureau of Finance will not be able to processing checks to pay debts or payroll and scheduled electronic direct deposits will not be made.
 
The Bureau of Lands and Surveys will have to close.
 
The Ministry of Education food services will not be able to provide meals to the students when school starts on August 6.
 
It appears that one of the remaining obstacles to the passage of the supplemental budget is the ratification of the FY 2011 over expenditures. The Senate accepted the financial records provided to it by the Bureau of Finance and voted to ratify the over expenditures. The House of Delegates Ways and Means Committee report appears not to oppose ratification of the FY 2011 over expenditures, but wants to wait for the FY 2011 audit to verify the reasons for the over expenditures. Surely, there is some compromise that can be reached to overcome this obstacle. Unless I receive and act upon the supplemental budget on before 4:30 p.m. Tuesday, I will have no choice but to cease the budget activities set forth above.
 
/s Johnson Toribiong
President
Republic of Palau
Cc: Council of Chiefs
All Governors