'Years later': Vanuatu cyclone victims still waiting for financial relief

Andrew Mathieson
Andrew Mathieson Published March 18, 2025 at 7.00am (AWST)

Affected households from repeated tropical cyclones in Vanuatu dating back two years are still waiting for payment from a compensation scheme.

The digital cash transfer program, promised by the Vanuatuan government weeks after the destruction of Cyclone Judy and Cyclone David to assist disaster victims, has stalled.

The initiative, first announced by former Minister of Finance John Salong in May of that year, detailed the government providing direct financial assistance instead of traditional aid such as food and shelter.

Families were told soon after the cyclones struck just 48 hours apart to provide their ID details for a cash transfer.

Vanuatu Post Limited was assigned to create an online app for the implementation of a digital cash transfer.

Registrations began in the middle of 2023, with more than 1000 households and a further 90 shop vendors enrolled in Lelepa in the first of many cash transfer stages which would be rolled out around Vanuatu.

It is accepted around 66,000 targeted households were effected by the cyclones and are waiting for the promise to enrol for a service that has yet to be delivered.

The proposal was set to expand the program across a number of provinces and outer islands, however more than two years later no payments have been made while families struggle to rebuild their lives, relying on the goodwill of handouts for communities to survive.

Mr Salong had previously attributed the delays to legal complications within Vanuatu's Disaster Risk Management Act.

In an update late in 2023, the minister explained while a budget had been prepared for the program, it was not passed in Parliament due to "political instability".

He later assured the system was being tested with 120 households in Lelepa and was still undergoing the final security evaluations.

The only remaining step was obtaining a no-objection letter from the Reserve Bank of Vanuatu, which presides over monetary stability for the country.

By February 2024, the government had allocated VT700 million ($A8.96 million) from the national budget for the digital cash transfer program.

This was part of a broader VT917 million ($A11.7 million) rural economic support initiative to repair damage from the cyclones.

Despite the incessant promises, none of the funds have yet to reach disaster-affected families.

A former MP for Torba Province, Christophe Emelee, voiced objections about the decision to shift away from previous cash transfer models that were successfully managed by local financial 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," the one-time Financial Minister said.

He also questioned Vanuatu Post's ability to manage such a program, arguing the entity lacks both the expertise and the willingness to handle large-scale financial disbursements.

Other issues include a lack of clarity on management costs, software accreditation, ownership rights, and accessibility for residents in remote areas.

There were also further concerns about Ni-Vanuatu workers in Australia and New Zealand and whether or not they would be excluded from receiving assistance, despite having national IDs.

The Reserve Bank of Vanuatu (RBV) and Vanuatu Post Limited have yet to respond publicly under advice from the national government.

The Ministry of Finance told local media they are no longer commenting until they have a firm outcome on a final delivery of the program.

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