The Republic of Palau Compact of Free Association (COFA) Trust Fund closed the third quarter of 2026 ending September 30th at $447,334,633, absorbing a modest quarterly dip as broad market rate pressures challenged fixed income and small caps. This is according to a quarterly report from Raymond James, Palau’s money manager in United States.
The trust fund is a part of the COFA agreement between Palau and US that went into effect in 1994 at which time the initial amount of $66 million was paid but was required to be invested in US and cannot be withdrawn unless US approved.
The trust fund was supposed to yield an annual interest of 12% and to reach $500,000,000 after 15 years enabling Palau to fund its government annual budget as ab independent nation. But It is now 32 years later, such amount has not reached and we are more independent. Some of the reasons include fluctuations in stock market and also that Palau had withdrawn some amounts annually to support its budget and programs since then.
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The Supreme Court Trial Division on Friday, October 30,2026, struck down the second impeachment resolution of Ngardmau Governor Jennifer Ngiraiwet, ruling that state lawmakers violated the Palau Constitution by denying her a fair opportunity to respond before voting her out of office. This is a result of the second lawsuit filed by Gov. Ngiraiwet filed after she was impeached for a second time.
In the meantime, citizens have signed and submitted a recall petition to remove Speaker Terence Miozawa and Floor Leader Neil Fisher who are the prime leaders of the legislature and the impeachment.
This is thirty days after the Appellate Court threw away on September 16th the judgment of the same Trial Court Justice affirming the first impeachment resolution. The legislature a few hours after receiving the decision of the Appellate Court hastily enacted similar resolution without providing notice and an opportunity for Gov. Ngiraiwet to defend herself prompting her to file a second lawsuit on the same grounds. Speaker Terence Miozawa reportedly took over the government as acting governor and with his lawyer stopped all payments to employees and vendors associated with Ngiraiwet.
Associate Justice Peter Huffman held that the Eleventh Kelulul Ngardmau breached the constitutional Fair Treatment Clause (Art. IV § 5) when it adopted impeachment resolution KN 11-27-2026 during a hastily called night session on September 16, declaring the measure void and without legal effect. The decision marks the second judicial defeat for the legislature’s removal push—following an Appellate Division ruling that voided a July impeachment for similar procedural failures—and halts the Palau Election Commission’s planned November 13 special election.
The Court’s judgment turned entirely on fundamental fairness: Constitutional Fair Treatment: The Court held that the Constitution requires both adequate notice and a genuine, meaningful opportunity to prepare and be heard before an official is removed in a one-step impeachment process :Deficient Notice and Opportunity: Lawmakers gave Ngiraiwet, at most, a few hours’ notice outside normal working hours, accompanied by courtroom hallway shouts and an afternoon email. The Court ruled that forcing an official to travel between Koror and Ngardmau, gather documents, and locate witnesses within hours made the offer to participate “a mere gesture” rather than a real defense opportunity : Rejection of Legislative Defenses: The Court dismissed arguments that Ngiraiwet waived her rights by failing to attend, noting her counsel objected beforehand, and rejected claims that less time was needed merely because a prior removal attempt had occurred.
Invoking the Palauan proverb “A reched a ioud, e a ioud a reched” (“rushing slows things down”), Justice Huffman concluded that legislative will cannot bypass constitutional rights, leaving Ngiraiwet as the recognized Governor of Ngardmau.
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Former Palau Housing Authority (PHA) employee Kukong Khalye Hilbert was sentenced last Tuesday to a year in prison and 10 years on probation for stealing thousands of dollars from the housing authority clients.
The sentence, handed down by Associate Justice Honora E. Remengesau- Rudimch in the Trial Division of the Supreme Court, follows Hilbert’s October 26 guilty plea to two counts of second-degree theft under a negotiated agreement. Two additional theft counts were dismissed in exchange for her plea.
Under the sentencing terms, Hilbert faces 24 months of imprisonment with 12 months suspended, ordered to report to custody on November 1, 2026. She must also complete 10 years of supervised probation, perform 200 hours of community service, pay an $800 fine within one year, and undergo screening and treatment at the Division of Behavioral Health.
Court documents show Hilbert stole an aggregate of $7,281.98 between January 1, 2023, and March 30, 2025, from 19 Palau Housing Authority clients. The scheme was uncovered in late March 2025 after Executive Director Jovalyn I. Koshiba contacted the Bureau of Public Safety’s Division of Criminal Investigation regarding client complaints.
According to an affidavit by Detective Lieutenant Harvey Takeshi, clients reported Hilbert demanding unauthorized payments for home fire insurance policies, direct loan installments, application fees, and bidding processing fees. An initial report from client Wyzer Seklii prompted an inquiry with Melekau Insurance Company, which confirmed it had never received an application, quote, or payment on Seklii’s behalf. Housing officials reiterated that the authority does not handle fire insurance policies, which are managed directly between clients and the insurer.
Investigators detailed several direct cash collections from clients across various locations. In one instance, Yoko K. Woodcock paid Hilbert a total of $2,482.55 in cash across multiple home loan installments between May and August 2024, receiving unauthorized receipts. In another, Hilbert collected $1,426 in cash from Remeliik Ngchar at his residence, which included $1,000 for an initial loan payment and $426 for fire insurance.
Hilbert provided a statement to investigators admitting to the actions, explaining she “was going through financial hardship and admitted purchasing a receipt book at West Office Supply and used it to issue fake receipts to PHA clients upon cash payments”.
Justice Rudimch ordered Hilbert to pay restitution to the victims in accordance with the schedule outlined in the plea agreement. Hilbert’s $1,000 cash bail will be credited toward restitution, accompanied by an immediate $3,000 payment following the hearing, with the remaining balance satisfied through bi-weekly installments of $100. If Hilbert satisfies the full restitution amount before completing her 12-month jail term, she may petition the court for early release subject to an 8:00 p.m. to 6:00 a.m. daily curfew. Work release may also be authorized upon verification of employment.
The court scheduled a status report for February 26, 2027, to review her compliance.
Counsel in the case included Assistant Attorney General L. David representing the Republic of Palau, and Acting Public Defender M. Lomaloma representing Hilbert. Assistant Attorney General Hila Asanuma also appeared on earlier filings for the Republic.
The Melekeok State will celebrate its Constitution Day on Tuesday, November 3 during whih Gov. Henaro Polloi will deliver his annual state address in a ceremony to be held at Bailechesau, the state capitol.
On Friday, November 6,2026 will be the new date for Memorial Day, the remembrance and celebration of the state culture and ancestry also to be celebrated at Bailechesau. It used to be held on the Friday after Thanksgiving Day by law for over 30 years but was moved to earlier by law. State inspectors will inspect cemeteries and tombs of the ancestors on Monday, November 2 and awards will be announced on Friday as to the best and well groomed graves and cemeteries of the six hamlets.
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A soft ribbons cutting ceremony is reported to be held on Monday, November 2,2023 according to Police officers and Prison guards who reported that they have heard about it but cannot confirm it and referred all inquiries to the top officials who are most overseas in the past days as shown in their facebook photos in Hawaii for opening of the Palau patient house and JEM meeting with the Americans on annual review of the Compact.
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The Angaur voters will go to the polls tomorrow, Tuesday October 3, 2026 for governor between incumbent Kennosuke Suzuky and challenger Fukuichi and between five incumbents and five challengers. On the ballot for referendum is a constitutional amendment to the state constitution lowering from 75% or ver to over 50% approval for amending the constitution.
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Honolulu, Hawaii (Oct. 29, 2026) — Protecting our communities, improving infrastructure, and ensuring development delivers lasting benefits for Palau were key priorities for President Surangel S. Whipps Jr. at the U.S.–Palau Joint Committee Meeting in Honolulu on Oct. 28.
“We are one family,” President Whipps said, emphasizing that the partnership grows stronger through open, honest dialogue and a shared commitment to finding solutions.
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As part of the ongoing 2026 International Training Workshop on Cultural Heritage Protection in Palau, participants are receiving specialized training in heritage tourism management and capacity building to improve the management and promotion of cultural and natural heritage sites on October 27-29, 2026.
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The training is led by Ms. Akiko Tashiro, a professor at Hokkaido University in Japan, who is guiding participants in understanding practical approaches to heritage tourism planning and site management. Through this training, participants are gaining knowledge and skills to enhance their tourism sites while protecting the cultural and environmental values that make each site unique.
Honolulu, Hawaii (Oct. 27, 2026) — President Surangel S. Whipps, Jr. joined our Palauan community in Hawaii for the ribbon cutting and blessing of the new Palau House in Makiki, Honolulu. The recently acquired building serves as a residence for Palauan patients and their families while they receive medical care in Hawaii.
There are nine patients in the house currently. It’s expected to reach its full capacity of 14 by the end of November.
Being far from home during treatment is hard on patients and the families who travel with them. This house gives them a safe, welcoming place to stay, close to the care they need and close to each other.
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As part of the ongoing 2026 International Training Workshop on Cultural Heritage Protection in Palau, participants are receiving hands-on training in 3D documentation of significant stone features at Airai Traditional Village on October 27-29, 2026.
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This training provides national and state government representatives with valuable exposure to innovative technologies that can strengthen the documentation, preservation, and protection of Palau’s irreplaceable cultural heritage for future generations.
