Palau Seeks $130,000 to Clear Taipei Embassy Rent Arrears

By: Eoghan Olkeriil Ngirudelsang KOROR, Palau (Sept. 10, 2026) — Palau’s Ministry of State is seeking $130,000 in the proposed fiscal year 2026-27 budget to pay rent arrears owed by its embassy in Taipei and the apartment housing Palau’s ambassador. The unpaid rent was disclosed during Senate oversight hearings in August as the Senate Committee on Ways and Means and Financial Matters reviewed the proposed unified budget. The committee reviewed each ministry’s spending from the previous fiscal year and questioned officials about proposed budget increases. During the review of the Ministry of State’s budget, Senate Foreign Affairs Committee Chairman Mason Whipps raised concerns about the rent owed by Palau’s diplomatic mission in Taiwan. Whipps said $130,000 of the proposed increase for the Taipei embassy was intended to cover unpaid rent.

Minister of State Gustav Aitaro confirmed the allocation. “$130,000 is for back pay of rent,” Aitaro said. Aitaro explained that some rent payments had been made, but the embassy’s numerous activities resulted in funds being diverted to other needs while rent arrears accumulated. “While some payments were made, due to the embassy’s many activities — the rent was sacrificed and funds were diverted to cover other activities while rent arrears piled up,” Aitaro said. Whipps said the arrears reflected poorly on Palau’s reputation. “Embassies in other countries symbolize Palau. It is an embarrassment when we owe apartment rent payments. I think it is something that shouldn’t happen,” Whipps said. He said the government had opportunities to request additional funding, including through supplemental budgets and a budget call the previous year, and called the accumulation of the arrears unacceptable. “There had been opportunities for…