Weighing the competing priorities

By Kambes Kesolei

The inauguration of the new government on January 15 was marked by an unusual episode that was brief in which others who witnessed it jokingly said it portends of what is to come of the 8^th government of the republic. It happened right after the oath-taking, photo-op, and lunch procession. A packed cloud of heavy rain showers started to form unexpectedly with a powerful gale that disjointed the tents, tore the roof cover, overturned chairs and left the center stage where the elected leaders sat moments before look like a war path.

But joking aside! The impact of the economic crisis is becoming more pronounced by the day as the government faces daily task of weighing different competing funding priorities that could put important and needed programs and services to halt. Could this be an ominous sign of a country on the verge of a financial meltdown?

With the oft mentioned extension of the compact financial provision for another year stuck in the U.S. Congress, the national government may have no choice but to begin withdrawal of the first $15 million from the compact trust fund. A fund that at last reported stood at around $130 million.

Two weeks ago, the President Toribiong sent to OEK, the 2010 Micro Games budget request of over $600,000 and asks them to identify funding. If no funds are available, then, to advise immediately so that the Games may be cancelled.

And then just last week, a letter to the president from Health Minister Dr. Stevenson Kuartei, was revealed requesting emergency need for CT Scan and Hemodialysis machines. Once again, the president forwarded to OEK the supplemental appropriation request for FY 2010 for $600,000 toward the purchase of the urgently needed equipments. So what to do? Fund the 2010 Micro Games which Palau has committed itself to or buy the urgently needed CT Scan and Hemodialysis machines?

If you think choosing between the two is an easy choice to make, then consider that last week 110 members of Palau Nurses Association are threatening to walkout if their concerns are not met. Their concerns is that their working conditions has deteriorated to a crisis point and ask for increase in number of nurses; nurses to be placed under a Bureau; and upgrade their salaries. Ten nurses are needed immediately to avoid the looming emergency and 40 more will be required if the hospital is to meet the standard ratio of 1 nurse for every 4 patients. The budget for the ten new local hire nurses will be $120,000. Do we risk the 110 nurses walking out? That is a one messy possibility.

If that still isn’t enough to put you in a gloomy mood, reliable sources say the government is nine-paydays behind in paying Social Security taxes and the government funded pension plan. Funds borrowed will eventually have to be paid back and soon as the Social Security is about to be forced to withdraw against the nest egg.

And Vice President Mariur in comments to the media warns that the financial crisis facing the government could result in furloughing employees. President Toribiong came back with later statement that that no layoffs but a likely chance of reduced works hours.

And we are not yet talking about procuring the much needed new generators until the next power crisis occurs. What about the rising cost of fuel? The government attributed most of the over expended $1.8 million to the excessive fuel costs.

And, now over to you Ngeulmud. Local economy continue to contract, less tax collections, less services, less everything…Let’s have those $50,000 brain put to work and stop pretending.