The administration of US President Donald Trump has imposed sanctions on two political figures from Pacific island nations, citing alleged corruption and concerns about expanding Chinese influence in the region.
On Tuesday, the US Department of State announced sanctions against Hokkons Baules, president of Palau’s Senate, and Anderson Jibas, a former mayor in the Marshall Islands. Both were accused of engaging in “significant corruption”. As a result, they and their immediate family members are now barred from entering the United States.
“The Trump Administration will not allow foreign public officials to steal from U.S. taxpayers or threaten U.S. interests,” State Department spokesperson Tommy Pigott wrote on social media.
The State Department’s Bureau of International Narcotics and Law Enforcement (INL) also voiced support for the move, stating: “Corruption that hurts U.S. interests will be met with significant consequences.”
In both cases, US officials linked the alleged misconduct to opportunities for China to strengthen its presence in the Pacific.
The State Department claimed Baules accepted bribes in exchange for backing Chinese interests in Palau, a Micronesian island nation and the world’s 16th smallest country. “His actions constituted significant corruption and adversely affected U.S. interests in Palau,” the department said.
Jibas, meanwhile, was accused of “orchestrating and financially benefitting from” schemes involving the Bikini Resettlement Trust, a US-supported fund intended to compensate communities affected by nuclear testing on Bikini Atoll in the Marshall Islands.
The trust held nearly $59 million in 2017, when the first Trump administration transferred control of the main resettlement fund to local authorities and gave up its auditing authority. Since then, the fund has sharply declined. By February 2023, it had dropped to about $100,000, and payments to survivors and their descendants had stopped.
Critics have pointed to Jibas, who was elected mayor in 2016 to lead Kili, Bikini and Ejit islands. He had campaigned on expanding local control over the fund. However, reports from The Wall Street Journal and other outlets alleged that funds were misused for personal expenses, including vacations, travel and the purchase of a new pick-up truck.
In its announcement, the State Department connected the alleged misuse of funds to broader geopolitical concerns, including growing Chinese influence and increased migration to the US both central issues in Trump’s political platform.
“The theft, misuse, and abuse of the U.S.-provided money for the fund wasted U.S. taxpayer money and contributed to a loss of jobs, food insecurity, migration to the United States,” the department stated.
“The lack of accountability for Jibas’ acts of corruption has eroded public trust in the government of the Marshall Islands, creating an opportunity for malign foreign influence from China and others.”
Both Palau and the Marshall Islands were former US territories occupied during World War II before gaining independence in the late 20th century. Today, they remain part of a Compact of Free Association with the US, allowing Washington to conduct military operations and oversee defense matters in the region.
They are also among the few countries that continue to maintain diplomatic ties with Taiwan, a stance opposed by China. Only about a dozen nations still officially recognize Taiwan, most of them located in Central America, the Caribbean and the Pacific.
China has sought to persuade these smaller nations to switch recognition from Taipei to Beijing, while also expanding trade ties and challenging US military influence in the southern Pacific.
Baules has been among local leaders advocating for closer ties with Beijing and has publicly supported recognizing China’s government over Taiwan’s. These developments have placed Pacific island nations at the center of a broader geopolitical rivalry between the US and China.
Similar diplomatic tensions have surfaced elsewhere. Panamanian President Jose Raul Mulino has accused the US embassy of threatening to revoke visas of officials amid competition over influence in the Panama Canal. In Costa Rica, lawmakers including Vanessa Castro and former President Oscar Arias have claimed their visas were revoked over connections with China.
At the same time, relations between the US and Pacific island nations have faced strain over climate policy. The Trump administration’s withdrawal from global climate agreements and efforts to curb emissions has raised concerns among island nations particularly vulnerable to rising sea levels.
Despite these tensions, the State Department framed Tuesday’s sanctions as part of a broader effort to uphold accountability and protect American interests.
“The United States will continue to promote accountability for those who abuse public power for personal gain and steal from our citizens to enrich themselves,” the department said.
“These designations reaffirm the United States’ commitment to countering global corruption affecting U.S. interests.”
