Port Vila Council 'Helped Officials To Dodge Property Tax'

by Mary Swire, Tax-News.com, Hong Kong

26 September 2005

In Vanuatu's Port Vila Presse last week, Municipality commissioner, Hannington Alatoa, was reported as saying that the former city mayor would instruct the treasury to exempt certain individuals from paying property tax.

According to the commissioner, between the years 2002 and 2005, the municipality "just looked after their own supporters" with the result that the town council now has more that VT280 million (US$2.5 million) in outstanding property tax.

The paper reported that this corruption went to the highest levels of authority in Vanuatu, and it is believed that two senior government officials - one of whom is reportedly a cabinet minister - owe half-a-million vatu each. "The list goes on and on," the commissioner stated.

However, the commissioner went on to praise the honesty of the expatriate community, who he observed are the best taxpayers in town. "Their property tax is paid on time and yet we haven't tar sealed their roads. Other people for whom we provide services aren't paying their taxes," he noted.

Alatoa, and acting town clerk Willie Reuben Abel, have been appointed to help turn around the town council after a damning report, known as the Aronboe Report, condemned its financial mismanagement.

"The real reason we are facing financial problems is that the council was not properly managed," explained the acting clerk.

"If you total up the funds that were not properly accounted for it comes to almost VT 200 million," he added.

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