The Port Vila Municipal Council in Vanuatu has accumulated debt worth over 12 million US dollars.
The Mayor Willie Pakoa has suspended three of its 14 councillors over allegations of the misuse of funds and revenue of the council.
The Minister of Internal Affairs, Moana Carcasses Kalosil, has warned the Mayor and councillors to improve the financial situation by the end of the year.
He has given specific instructions to the council and appointed an advisor to train the staff on how to control its accounts.
"Basically have their financial reports right. I've instructed them that instead of using this myob system, we're going to use the system that the government is now using at the moment we're going to train staff down there. And also there is too many staff, I mean for a small country like this we cannot have 68 staff. It's too much. Prioritise the staff, put the staff in the right place."
Moana Carcasses Kalosil says if the situation is not improved by the end of the year, he will suspend the council for 12 months.