Minister Iavro steps up scrutiny of VT180M fund

October 6, 2026 10:08 pm | Posted in Business News | Share now TwitterFacebook

Minister for Trade and Commerce Robson Iavro has stepped up scrutiny of the VT180 million Value Addition Investment Capital Fund (VAICF), directing senior Ministry executives to assess how the 11 recipient businesses have used the funds.

The Ministry of Trade and Commerce (MoTC) confirmed this last night in an update on the Fund, through which VT180 million was released to 11 selected local businesses.

The Ministry said it has taken note of public concerns raised about the management and use of the Fund and wants to reassure the public that these concerns are being addressed.

The release of the funds was approved by the Council of Ministers (COM) on 20 November 2025 for projects approved by the Fund’s Board of Governors under the VAICF Regulation made on 2 July 2025.

The Fund was established to help local businesses add value to Vanuatu’s products, upgrade their processing operations and standards, create jobs and open new markets.

“Since taking office in July 2026, following the resignation of former Minister Samson Samsen, Minister Iavro has made proper management of the Fund one of his first priorities,” the MoTC said.

“Over the last two months, Minister Iavro has personally met with several recipients to see first-hand how their projects are progressing and the challenges they are facing on the ground.

“Alongside these meetings, the Minister directed senior Ministry executives to assess each of the 11 recipients to confirm that the funds have been used for their intended purposes and as outlined in the Regulation.

“This assessment is now well underway.”

The MoTC said each of the 11 operators who received funds signed a Grant Funding Agreement (GFA) with the Government.

The GFA sets out the purpose for which the funds were granted, the obligations of each recipient and the conditions under which any mismanagement or misuse of funds is to be addressed.

The Ministry’s assessment, and any decision that follows, will be based on these agreements and their conditions.

Under the GFA, each recipient is given a 12-month performance period, during which the Fund Secretariat carries out quarterly performance assessments.

The 12-month performance period comes to an end in December 2026, with an independent assessment to be undertaken by an external assessor.

This work sits alongside the compliance and accountability work currently being undertaken by the Government’s oversight institutions, with which the Ministry continues to cooperate fully.

By following the process set out in the Regulation and in each GFA, the Ministry is ensuring that the assessment is fair to every recipient, that its integrity is protected, and that any decision taken by the Government rests on a sound legal footing and will stand up to scrutiny or challenge.

Appointment of an independent assessor

To guarantee the integrity of the process, the Ministry is in the process of appointing an independent assessor to review all compliance and performance reports for each of the 11 businesses that received funds.

The assessor will be independent of the Ministry and the recipients to avoid any conflict of interest or interference, so that the public can have full confidence in the findings.

The findings will be reviewed against the terms and conditions of each GFA and will allow the Public Accounts Committee (PAC) to complete its tasks.

Based on these findings, the Ministry will make its recommendations on the future of the Fund to the COM, and the Government will decide either to continue supporting genuine business operators or to seek recovery of the funds through legal avenues.

Accountability for public funds

The MoTC acknowledges the support of the Deputy Prime Minister and Minister of Finance and Economic Management, who has reaffirmed the Government’s commitment to the effective implementation of the Fund and has asked the Ministry of Finance and Economic Management and the Ministry of Trade and Commerce to work together to ensure that its administration meets the Government’s financial controls and compliance requirements.

“These are public funds and the people of Vanuatu deserve to know that they have been used for the purpose for which they were given,” said Minister Iavro.

“Many of these businesses are working hard and doing exactly what they set out to do, and they deserve our continued support.

“Where funds have not been used as intended, the Government will act. The independent assessment will give us the facts we need to make that decision fairly and decisively.”

The Ministry said it will continue to keep the public informed as the assessment progresses.