25 Feb 2011

Marshall Islands rejection could hurt future US grants

4:25 pm on 25 February 2011

Opposition senators in the Marshall Islands are frustrated that the government hasn't accepted United States offers to assist investigations into the theft of more than half a million US dollars in federal grants.

So far ten people in the Marshalls have been charged, including six in government for theft.

The cabinet has rejected U.S offers to be involved in the ongoing corruption investigation, believing they have the means to handle it.

But our correspondent Giff Johnson says the opposition is concerned that a refusal to accept the offer may create a loss of confidence in the Marshall Islands government, resulting in the US government withholding federal funds.

An opposition resolution now pending in parliament calls on the Cabinet to accept the offer.