The Ministry of Trade and Commerce is assessing how VT180 million released to 11 local businesses under the Value Addition Investment Capital Fund (VAICF) has been used, following public concerns about the fund’s management and use.

The Ministry says the assessment is under way and that an independent assessor is being appointed to review compliance and performance reports for all 11 recipients.

From a press release it states that the fund release was approved by the Council of Ministers on 20 November 2025 for projects approved by the Fund’s Board of Governors under regulations made on 2 July 2025.

The VAICF was established to help local businesses add value to Vanuatu’s products, improve processing operations and standards, create jobs and access new markets.

How will the 11 businesses be assessed?

Trade and Commerce Minister Robson Iavro has made the fund’s management a priority since taking office in July 2026.

The Ministry says the Minister has met with several recipients over the past two months to review their projects and the challenges they face. He has also directed senior Ministry executives to assess each of the 11 businesses to check whether the funds have been used for their intended purposes.

Each recipient signed a Grant Funding Agreement with the Government, setting out how the money should be used, the recipient’s obligations and the conditions for addressing any mismanagement or misuse.

The Ministry says its assessment and any subsequent decisions will be based on these agreements and their conditions.

Independent assessor to review findings

The Ministry is in the process of appointing an independent assessor to review the compliance and performance reports for all 11 businesses.

According to the Ministry, the assessor will be independent of both the Ministry and the recipients to help prevent conflicts of interest or interference.

The findings will be reviewed against the terms and conditions of each Grant Funding Agreement and are intended to help the Public Accounts Committee complete its work.

The Ministry will then make recommendations to the Council of Ministers on the future of the fund.

Government could continue support or seek recovery

Based on the assessment findings, the Government will decide whether to continue supporting businesses that are meeting the requirements or pursue the recovery of funds through legal avenues where money has not been used as intended.

Minister Iavro said the review was necessary to ensure public money had been used for its approved purpose.

“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,” he said.

“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.”

He said the independent assessment would provide the information needed for decisions to be made fairly.

When will the assessment be completed?

Under the Grant Funding Agreements, each recipient has a 12-month performance period, with quarterly performance assessments carried out by the Fund Secretariat.

The Ministry says the performance period ends in December 2026, with an independent assessment to be undertaken by an external assessor.

The review is taking place alongside compliance and accountability work by the Government’s oversight institutions. The Ministry says it will continue cooperating with those institutions and keep the public informed as the assessment progresses.