Koror, and Palau – The Senate Committee on Capital Improvement Project (CIP) chairperson Senator Paul Ueki has written a letter to Attorney General Ernestine Rengiil requesting for investigation of Palau’s asphalt plant system.
The system was procured in 1999 through RPPL 5-18 for road paving projects. According to Senator Ueki’s initial investigation, a total of $1.8 million from the Compact Capital Account Investment Earnings was appropriated for the procurement and construction of the asphalt plant system, and to buy necessary materials. The asphalt plant and its components reportedly cost $687,928.00. The remaining funds were then used to support road paving projects in Peleliu State.
In 2004 after the completion of the Peleliu road project, the plant was relocated to Koror State and was temporary housed in Surangel & Sons marina due to lack of space at the Bureau of Public Works.
Senator Ueki reported to Senate President Mlib Tmetuchl that “by 2006, the entire asset was retired and removed from the list of government assets.”
Three of its four components were surveyed and reportedly sold to Surangel & Sons company, while the other component after sitting in the marina until 2009 was removed and relocated per request from the Governor of Airai State.
Surangel & Sons reportedly offered $64,750.00 for three components but did not pay in monetary form, instead the company offered to complete the Ngersung Road Improvement Project.
According to Millan Isaak, Chief of the Property and Supply Division of the Ministry of Finance, Rick Mangham, CIP Manager and other staff members met with Mason Whipps of Surangel & Sons in late 2006, where Mangham and his staff determined that the Ngersung road project was a fair exchange in lieu of paying the national government and accepted the company’s offer.
After being tasked by the Senate President in July 2012 to update the Senate on the current status of the plant, Senate Ueki requested the Attorney General’s office to further investigate “the issue for matters of fair value exchange and possible collusion”.
Ueki also asked the AG to ‘look into how a total package of $1.8 million was “surveyed” in 5 years time for a measly value of $64,750.00 without actual money received by the national government’.
By R. Jonathan, OTV
