Disaster victims still waiting for promised cash relief

The government's initial pledge for a digital cash transfer program to aid disaster victims following Tropical Cyclones Judy and Kevin has stalled, leaving affected families still awaiting updates on the project's implementation.

A family in Etas reported being asked to provide ID information after the cyclones to receive cash transfers, but they have yet to receive any funds. "It is now 2025, two years after Tropical Cyclones Judy and Kevin, and we have not received the promised assistance," stated a family member, highlighting the prolonged delay.

The program was initially announced in May 2023 by then-Minister of Finance John Salong, who stated that the government would provide direct financial assistance instead of traditional aid such as food and shelter. Vanuatu Post Limited was tasked with handling the digital cash transfers, designated to develop an application to implement the program. Following a successful pilot project on Lelepa Island, registration began on Ambrym in mid-2023, involving over 1,000 households and 90 businesses. The plan was to extend the project to Tafea Province, the outer islands of Shefa, including Epi and Paama.

However, more than two years have passed without any payments being made, leaving affected families in a state of limbo. Salong previously attributed the delays to legal issues within the Disaster Risk Management Act. In an update in November 2023, he explained that while a budget had been prepared for the program, it failed to pass in Parliament due to political instability. Salong assured that the system had been tested with 120 households in Lelepa, and final security assessments were underway. The only remaining step was to obtain a no-objection letter from the Reserve Bank of Vanuatu (RBV), responsible for monetary stability.

As of February 2024, the government had allocated 700 million vatu from the national budget for the digital cash transfer program. This was part of a broader 917 million vatu rural economic support initiative. Yet, to this day, the funds have not reached the affected families. Finance Minister Johnny Koanapo stated last year that funds intended for the cash transfers would be used to address grievances of teachers. During the 2024 budget session, Opposition Leader Ishmael Kalsakau expressed concerns over the government's inaction, emphasizing that families affected by multiple cyclones were still struggling without the promised assistance.

Former MP for Torba Province, Christophe Emele, raised concerns about abandoning 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 gained international recognition. However, we abandoned those systems for new ones involving foreign developers who have since disappeared with the funds and are now facing legal disputes," Emele stated. He also questioned Vanuatu Post's capacity to manage such a project, arguing that the entity lacked the expertise and willingness to handle large-scale fund disbursements.

Emele highlighted further issues, including a lack of clarity on management costs, software certification, ownership, and accessibility for residents in remote areas. He also expressed concern for Vanuatu workers participating in the RSE scheme in Australia and New Zealand, questioning whether they would be excluded from receiving assistance despite possessing national ID cards. The Daily Post contacted the Reserve Bank of Vanuatu (RBV) regarding the no-objection letter, but they have yet to respond. Multiple attempts to contact Vanuatu Post Limited have gone unanswered. Efforts to obtain a response from the Ministry of Finance have also been unsuccessful.

Currently, 66,000 targeted families are still waiting for a promise that remains unfulfilled.