Indian agent flees Vanuatu as probe launched into citizenship agents’ corruption scandal

PORT VILA: Vanuatu authorities have launched a major investigation into four agents of the Citizenship by Investment Program (CIIP), accused of submitting forged payment receipts to obtain citizenship for clients.

One of the agents, an Indian national operating under the name Vanuatu Sky, fled the country just days before police carried out search raids.

The Citizenship Commission uncovered the alleged fraud, which involved agents altering official government receipts. Prime Minister Jotham Napat revealed during parliamentary debates on the Citizenship Amendment Bill in late October that one agent replaced the official invoice code “25” with a fake two-digit code “26” to create fraudulent documents.

Authorities executed search warrants across multiple properties, seizing counterfeit government stamps and letterheads linked to the scheme. Charles Maniel, Chairman of the Citizenship Commission, confirmed that two of the four suspects had warrants served against them, with two more pending. Meanwhile, a Ni-Vanuatu citizen implicated in the investigation has been barred from leaving Port Vila.

Martin St Hilaire, Director at EC Holdings and ACJ Vanuatu, described how the scam allegedly operated. Agents were expected to submit official receipts issued by the Government Cashier to the Citizenship Commission as proof of payment. “The suspicion is that some agents were creating fake receipts, and some citizenship might have been granted based on these counterfeit documents,” St Hilaire said.

He also said that legitimate clients are unlikely to face penalties unless they were complicit in the scheme. The scandal has added momentum to Napat’s push for the Citizenship Amendment Bill, which would require all CIIP agents to register as public companies with the Vanuatu Financial Services Commission and provide regular reporting.

The reforms also aim to ensure the full independence of the Citizenship Commission, insulating it from political influence. Opposition Leader Alatoi Ishmael Kalsakau argued that reforms must prevent interference from any source, including the Prime Minister’s office.

Vanuatu currently licenses 11 CIIP agents and 59 Development Support Program agents, with 14 DSP agents currently inactive. Government sources report nearly VT13 billion collected from both programs so far this year. Separately, MP Jay Ngwele has lodged a police complaint alleging illegal sales of diplomatic passports.

The investigation is expected to expand, with St Hilaire warning that “all agents operating in the program” could eventually come under scrutiny.