Speculation:Pel
From the Lyorn Records of the Dragaeran Empire
Pel is a secretive, mysterious, devious character. Thus, there's a lot about him that we can only speculate about.
[edit] Pel may be Paarfi
We know that Pel is no longer the Prime Minister (since there apparently isn't one at the time of Orca), so he seems to have vanished. Also, the "extra-curricular activities" that Paarfi of Roundwood engages in seem to be remarkably similar to those that Pel enjoyed during The Phoenix Guards.
It would not be outside the realm of possibility that a Yendi, with no distinctive physical House characteristics, might be able to pass for a member of another house, simply by dressing and acting a certain way. And if Paarfi's works are really as popular as he lets on, the books might be part of some elaborate Yendi scheme to achieve...something.
If nothing else, during The Viscount of Adrilankha, Paarfi seems remarkably well informed about Kana's activities--and even about Pel's connections, which Kana didn't even know about. While it's certainly possible that Paarfi may have simply consulted with Pel, it should be considered that this consultation may have been restricted to the inside of a single cranium, as it were.
And yes, I remember hearing Steve say that "nobody else is anybody else"... But then, Paarfi isn't so much a "character" in the books, as he is the ostensible "author" of them, so it could be an exception.
[edit] Pel May Actually Be the Prime Minister
Pel, a secretive character that prefers to operate in the shadows, may have very well arranged things to appear as if there were in fact no Prime Minister, to better achieve his ends.
[edit] Kragar may be Pel
See Speculation:Kragar for a fuller expansion of this rather pararectal notion.