Vanuatu's prime minister, Sato Kilman, is angry over the recent sale of state land in the capital Port Vila despite an indefinite ban on all state land sales by the government.
The plot was sold for nearly 1 million US dollars.
The Prime Minister's Office then called representatives from the Ministry of Lands and Department of Lands, State Law office, and all relevant Departments to an urgent meeting following the discovery of the sale.
The Daily Post Newspaper says those at the meeting heard the land was sold outside established procedures.
The First Political Adviser to the Prime Minister Richard Kaltongga says the Ministry of Lands has been advised to lodge a caution on the sale to prevent any further dealings with the land in question.
Mr Kaltongga says the Prime Minister's Office is very concerned that those behind the sale went ahead to complete the papers despite the ban in place.