President of Nauru 2004-2007
Ludwig Scotty returned as President on 22 June 2004 after a member of Harris's faction of the Parliament of Nauru defected. Ludwig was re-elected to Parliament in elections in October 2004, and most of his allies also did well. In this term, Scotty became the first president of Nauru to give up the foreign affairs ministry, as David Adeang was appointed to that position.
Scotty's government implemented major reforms to restore the country's economy.
Scotty and his supporters won a landslide victory in the parliamentary election held on 25 August 2007. On 28 August, Scotty was re-elected as president with the support of 14 of the 18 members of parliament, defeating Marcus Stephen.
Despite the grave problems which the Nauruan authorities faced in the early 21st Century, the years under the Presidency of Ludwig Scotty saw some measure of stability return to the island Republic, albeit constrained by austerity measures. The liberal use of Parliamentary no-confidence motions, the occasion of many crises of government over several years, seemed initially to have subsided under Ludwig Scotty's widely respected tenure of office. A constitutional review was being proceeded with, with a view to improving the functioning of Parliament and the offices of state.
On 13 November 2007, a motion of no-confidence against Scotty's government was unsuccessful; although a majority of those voting supported the motion (eight in favor, seven opposed), it fell short of the necessary nine votes. The motion was led by Dr.Kieren Keke, and it was based on allegations of misconduct on the part of Adeang and Scotty's unwillingness to act against Adeang.
On 19 December 2007, however, a newly comprised majority in Parliament did succeed in ousting President Scotty through a new vote of no confidence (ten votes in favour, seven opposed). The motion was based on the same causes as the November vote. Marcus Stephen was sworn in as President of Nauru.
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