Prime Minister Jotham Napat has defended the Government’s VT180 million Value Addition Investment Capital Fund, saying it remains an important policy to create jobs and increase Ni-Vanuatu participation in business while making it clear that his Government does not tolerate corruption or misuse of public funds.

Mr Napat made the remarks during a press conference in response to recent Public Accounts Committee (PAC) hearings into the administration of the fund.

He said the Council of Ministers established the fund to encourage more Ni-Vanuatu-owned businesses to participate in economic activities and confirmed the policy would continue.

“The Council of Ministers made a decision to engage more Ni-Vanuatu businesses in economic activities. That is why Government established the Value Addition Capital Fund. Its purpose is to create jobs, enable small businesses to participate in the economy, and Government will continue to review and improve the fund as we move forward.”

Mr Napat said the Government entrusted a committee of officials to scrutinise applications and ensure public funds were distributed through a transparent and accountable process.

Government acknowledges PAC oversight

The Prime Minister thanked the Public Accounts Committee and other parliamentary committees for their role in strengthening accountability and oversight of public spending.

He said Parliament’s committee system is an important feature of Vanuatu’s democracy and contributes to transparency and good governance.

However, he explained that the Government had not immediately responded to the PAC hearings because the Committee operates under a legal process established by the Expenditure Review and Audit Act.

According to Mr Napat, the Auditor General first audits Government expenditure before submitting reports to PAC. The Committee then scrutinises those reports and submits them to Parliament, where they are debated before becoming public documents.

“Many people have asked why the Government did not respond immediately. The Public Accounts Committee operates under a legal process set out in the Expenditure Review and Audit Act. The Auditor General audits Government expenditure and submits reports to the PAC, which then scrutinises those reports before submitting them to Parliament for debate. That is why Government waited before responding.”

Government reiterates zero tolerance for corruption

While discussing the PAC investigation, Mr Napat stressed that the Government’s position on corruption remains unchanged.

“When it comes to corruption, I want to make the Government’s position very clear. This Government does not tolerate malpractice, illegal activities or any form of corruption.”

He encouraged anyone with evidence of corruption or illegal activities to report the matter to the appropriate authorities so investigations can be carried out independently.

‘No one is above the law’

The Prime Minister reaffirmed that every person, regardless of position, must be held accountable under the law.

“I have said this before and I stand by it today: no one is above the law. The law applies equally to everyone—politicians, public servants and any person involved in corruption. Anyone with evidence should report it to the Police and allow the appropriate independent authorities and the courts to determine the matter. The law belongs to everyone.”

He said complaints should be referred to Police and other competent authorities, while the courts should determine whether offences have been committed.

PAC process and accountability

Mr Napat also addressed concerns over the PAC’s handling of its findings, saying questions remain over whether certain information should be publicly disclosed before the Committee completes the legal process required under the legislation governing its work.

He said this was one reason Government had been cautious in responding publicly.

However, he stressed that this should not be interpreted as reluctance to address corruption.

“The issues identified by the PAC also raise questions about whether the Committee has followed the correct legal process in releasing its findings. However, when it comes to corruption, I have no hesitation in saying that everyone must be held accountable. Any public servant involved in corruption should face the full process of the law.”

Mr Napat added that institutions such as the Public Service Commission have established disciplinary processes for civil servants where allegations arise.

Political appointees also accountable

The Prime Minister said political appointees are equally accountable and that ministers have the authority to act if wrongdoing is identified.

“Political appointees serve under contracts signed with their respective ministers. If any political appointee is found to have engaged in corruption, it is the responsibility of the minister to deal with the matter, including terminating that person’s contract where necessary.”

He said ministers have the power to terminate contracts where political appointees are found to have engaged in corruption or criminal conduct.

Internal audits where necessary

Mr Napat concluded by saying his Government will continue strengthening accountability and financial management.

He said where circumstances warrant, the Government can initiate internal audits before independent audits are undertaken under the Expenditure Review and Audit Act.

“The Government I lead does not tolerate abuse of office, conflicts of interest or the misuse of public funds. Where necessary, Government will conduct internal audits before independent audits are carried out under the Expenditure Review and Audit Act.”

The Prime Minister’s comments follow a series of PAC hearings into the Value Addition Investment Capital Fund, where concerns were raised over the fund’s administration, project selection process and implementation. The PAC investigation is continuing.