The International Monetary Fund (IMF) has raised concerns that political interference in Vanuatu’s state-owned enterprises (SOEs) is increasing the risk of corruption.

In a press release this week, the IMF stated that this kind of influence is preventing government-owned businesses from operating properly and efficiently.

As part of its recommendations, the IMF is urging Vanuatu to strengthen its Commercial Business Enterprise Law to ensure better oversight and reduce political influence in SOEs.

The IMF says improving governance is crucial to support strong and fair economic growth in the country.