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Vanuatu Disaster victims still waiting for promised cash relief
@Source: islandsbusiness.com
The digital cash transfer programme, initially promised by the Vanuatu government to assist disaster victims after Tropical Cyclones (TCs) Judy and Kevin, stalled as affected households await updates on its implementation.
A family at Etas said they were told after the cyclones to provide their ID details for the cash transfer but have still received nothing.
“We are in 2025 now, two years since TCs Judy and Kevin but we are yet to receive what they have told us,” said one of the family members.
The initiative was first announced in May 2023 by the then Minister of Finance John Salong, who said that the government would provide direct financial assistance instead of traditional aid like food and shelter.
The digital cash transfer is to be facilitated by the Vanuatu Post Limited, which was assigned to create an application for implementation.
After a successful pilot on Lelepa Island, registrations began in Ambrym in mid-2023, with more than 1000 households and 90 vendors enrolled. The plan was to expand the program to TAFEA Province, SHEFA Outer Islands, including Epi and Paama.
However, more than two years later, no payments have been made, and affected families continue to wait.
Salong previously attributed the delays to legal complications within the Disaster Risk Management Act. In his November 2023 update, he explained that while a budget had been prepared for the programme, it was not passed in Parliament due to political instability.
Salong assured that the system had been tested with 120 households in Lelepa and was undergoing final security evaluations. The only remaining step was obtaining a no-objection letter from the Reserve Bank of Vanuatu (RBV), which oversees monetary stability.
By February 2024, the government allocated VT700 million(US$5.67 million) from the national budget for the digital cash transfer programme. This was part of a broader VT917 million(US$7.44 million) rural economic support initiative. Today, funds have yet to reach disaster-affected families.
The Minister of Finance Johnny Koanapo last year conveyed that the funds allocated for the cash transfer will be used to address teachers’ claims.
During the 2024 budget session, Leader of the Opposition Ishmael Kalsakau raised concerns over the government’s inaction, emphasising that families devasted by multiple cyclones are still struggling without the promised assistance.
The former MP for Torba Province, Christophe Emelee, voiced concerns about the decision to shift away from previous cash transfer models that were successfully managed by local experts and supported by international donors.
“The previous systems worked well, were led by local professionals, and even received international recognition. Yet, we discarded them for a new system involving foreign developers who have since disappeared with funds, now facing legal disputes,” Emelee stated.
He also questioned Vanuatu Post’s ability to manage such a programme, arguing that the entity lacks both the expertise and the willingness to handle large-scale financial disbursements.
Emelee highlighted other issues, including the lack of clarity on management costs, software accreditation, ownership rights, and accessibility for residents in remote areas.
He raised concerns about Ni-Vanuatu workers in Australia and New Zealand under the RSE programme, questioning whether they would be excluded from receiving assistance despite having national IDs.
The Daily Post contacted the Reserve Bank of Vanuatu (RBV) on the no-objection letter, but they have yet to respond. Vanuatu Post Ltd was also contacted multiple times but has not responded. Efforts to obtain a response from the Ministry of Finance were also unsuccessful.
For now, 66,000 targeted households are still waiting for a promise that has yet to be delivered.
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