An organisation monitoring press freedom in the Pacific has raised concerns over a defamation suit taken against the national newspaper in Palau.
The suit was lodged by Surangel and Sons Co - the company of President Surangel Whipps Jr's father - against Island Times publisher Leilani Reklai over a report covering the early responses to leaked taxation documents of the company.
Pacific Freedom Forum (PFF) expressed concern that a defamation suit by the nation's largest private sector employer against the national newspaper will threaten public trust in media and private sector transparency.
PFF chair Robert Iroga said the paper was just doing its job reporting on issues already circulating in the public domain.
He said the matter is of public interest.
"Any journalists coming across official documents already cir-culating and directing public conversations would only be doing their jobs in looking into these issues, and reporting it," he said.
He said the PFF stands with its Palau colleagues in its commitment to the principles of free expression and the vital role of the media in a democratic society.
"We hope that those who have brought this defamation action understand that across the world, many governments have decriminalised these outdated laws be-cause of the censorship and fear they represent."
In a press statement last Thursday, Surangel and Sons owner Surangel Whipps Sr alleges "negligence and defamation" by the Island Times and its editor Reklai for an article published on Tuesday with "false and unsubstantiated allegations".
"I feel like we are being intimidated, we are being forced to speak a certain narrative rather than present diverse community perspectives," said Reklai told BenarNews, who is also a stringer for the news agency.
According to BenarNews' report, Surangel and Sons financial details was leaked from the country's tax office and posted on social media last weekend, prompting heated online debate over how much it paid.
Whipps Jr's government is currently rolling out a new corporate and goods and services tax system in Palau and its merits have been a focus of election campaigning," it reported.
However, the company said its "privacy rights had been violated," the tax details were obtained illegally, posted online without consent, and some of the figures had been altered.
"The motivation behind the circulation of this document is clearly for misinformation and disinformation to confuse voters. In the end Surangel and Sons is not running for office. Unfortunately, it has been victimised by this smear campaign," it said.
The company has also announced it will "discontinue the sale of Island Times
publications at all its outlets" because of the newspaper's "failure to uphold journalistic standards and its publication of harmful misinformation".
Palau Media Council said in a statement on Saturday that it views the lawsuit against the newspaper "as an assault on press freedom".
"In a healthy democracy, a free and open press is essential for informed citizens and responsible governance," the council said.