Vanuatu's Deputy Prime Minister has warned department heads not to use the $US2.6 million first tranche of the European Development Fund on politically motivated projects.
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The Daily Post reported Jotham Napat saying the fund must be used in a transparent manner.
Mr Napat wants the fund to be dedicated to the country's development priorities.
Mr Napat has called on directors within the trade and agriculture ministries to show him how they were going to spend the money.
He said it is not good enough that the money has been sitting there unused for the last seven months.
Mr Napat has instructed the directors to make sure the second tranche of $US4.3 million is used in a timely manner.