KOROR, Palau (22 Nov 2006) -- The Malaysian firm that was involved with the stalled billion-dollar development project in Peleliu State [Republic of Palau] is willing to rescue Pacific Savings Bank with US$20 million budget that he can easily raise provided that the national government will meet several terms and conditions. These terms and conditions included the approval of the US$2.1 billion Nautilus City Project that the UK Investment Holdings Ltd is pushing in Peleiu State with all concessions and permits such as Foreign Investment Approval Certificate, Financial Institution Commission and the Environmental Quality Protection Board. The other condition is that the government of Palau must honor promises made to UK Investment Holdings Ltd's Morris Davidson regarding the Palau-Malaysian Diplomatic Trade Ties. Based on an Email from Malaysia to Peleliu Governor Jackson Ngraingas, Davidson said that the situation in Palau is simple. "Many Palauans (I am informed about 7,000 people) will loose their savings due to the failure of the bank. The President has no solution other than his usual solution 'begging,' he said. Ngiraingas provided a copy of Davidson's letter, which also said the Senate President Johnny Reklai will need to come to Malaysia if he wants his help. Davidson said he has the solution of the Pacific Savings Bank's financial crisis by assuring that he can easily raise US$20 million and that his terms are clear. He said that all that the President needs to do is say yes or no. "If yes, I need to get on with the job quickly. In this matter, everything that was previously promised by the President must be honored first, before the bank is rescued," he said. Ngiraingas explained that President Remengesau has promised Davidson to approved the stalled diplomatic ties between Palau and Malaysia, including the appointing of Davidson as honorary consul. Ngiraingas said that, at this point, the offer from UK Investment Holdings Ltd is the best solution for the restoration of the Pacific Savings Bank without the Financial Institution Commission and the government having to exert effort and money. Ngiraingas said that UK Investment Holdings Ltd would immediately takeover the operations of the bank and use the US$20 million to pay the depositors and start collecting loan repayments. It would be recalled that the company has shelved its plan to build the project to build world class facilities like hotels, casino, airport, golf course and other amenities in Peleliu due to what it has called as unacceptable conditions set by the Foreign Investments Board. | In the wake of the Nautilus City Project bribes scandal, UK Investments Holdings shelved the project, which aims to develop Peleliu into an international casino gambling and resort destination. (Click image to open 620p x 400p graphic in new window.) The project would cost a whopping US$1.2 billion. On Tuesday, Ngiraingas met with Sen. Reklai and told him about Davison's offer to rescue Pacific Savings Bank. A conclusion was reached wherein the Senate and the House must meet immediately to discuss the survival of the bank. Ngiraingas also informed Sen. Alan Seid, whom he wanted to be back immediately from the Business Conference in Hawaii. Ngiraingas told Seid that the funding to take care of the bank shortfall can be had before the Nov. 28 deadline by Financial Institution Commission and they need to meet right away with the other senators to come up with a workable plan that Davidson could agree on. SOURCE - Palau HorizonCDNN Related NewsPALAU - UK Investments Holdings sinks Nautilus City ProjectPALAU - Ousted Peleliu State Governor Jackson Ngiraingas charged with briberyPALAU - Peleliu State Governor Jackson Ngiraingas denies treason chargesPALAU - Personal attacks anger Palau presidentPALAU - Nautilus City Project sinking fastPALAU - Pro-gambling lobby rolls dice on Angaur casino bill | 
