Deputy Prime Minister and Minister for Finance Professor Prasad has confirmed that the government will not make any more backdated payments to the University of the South Pacific as discussions continue regarding the amount of VAT USP owes the government.
While responding to a question from Opposition MP Jone Usamate on backdated payments to USP during the Committee of Supply session in Parliament on the 2025/2026 National Budget, Professor Prasad said he and the Minister for Education attended a USP Council meeting where there is an issue about VAT that USP owed to government.
He says they are having discussions on the actual amount that is left in arrears.
Professor Prasad says they have already paid two installments of the arrears, and once the discussion is concluded and the actual amount is determined, the balance will be cleared.
He says right now, the government believes the VAT amount that USP owes would balance off the arrears.
The government has paid USP $35 million in arrears.
The Ministry of Finance confirms they believe the government is owed $40 million but it is under discussion.
