The Premier of Niue says the police are investigating a shortfall in the collection of departure taxes.
The Premier, Toke Talagi, says the investigation comes after Treasury identified a discrepancy in the departure tax take.
Mr Talagi, who is also the minister of police, and customs and immigration, says the size of the shortfall is not yet known and police are working to establish where the money has gone.
He says the investigation will determine whether criminal activity is involved.
"Look it's disappointing if money has disappeared and staff are involved. What we need to do is establish that fact and determine the actions beyond that."
Toke Talagi says he will decide what steps to take once he has received a report from police.