Palau took control of its national ship registry after its private sector partner was sanctioned by the U.S.
The government has terminated the operator of the registry after months of reported operational failures, financial freezes due to sanctions and increasing risks to its reputation.
This decision led to a debate in Congress about who should oversee the registry during the period of transition.
The authorities had issued a notice of termination in September last year, stating reputational damage to Palau-flagged ships, blacklisting, and even bank account freezes, including a pattern of late payments.
The notice was withdrawn after a month to allow for an audit of the registry’s operations. After the review was done, the government reinstated the termination in December, stating that the registry does not meet the mandatory operational standards.
After the termination, the House of Delegates amended the Senate Bill 12-22, SD1, HD2.
Per the amendment, the president can enter into a 6-month, procurement-exempt contract to manage the registry, with a
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