The Supreme Court has dismissed a legal challenge by members of the Public Service Commission (PSC) against the Government’s decision to transfer responsibility for managing the Government’s fleet and housing portfolios to line ministries, ruling that the commissioners did not have the legal standing to bring the case.
In a decision delivered on 29 July 2026, Justice Beverleigh K. Joshua upheld the Government’s application to strike out the judicial review brought by PSC Chairman Meto Nganga and four other commissioners.
The case stemmed from a Council of Ministers (COM) decision on 29 January 2026 to transfer management of the Government vehicle fleet to the Ministry of Finance and Economic Management and the Government housing portfolio to the Architects Unit within the Ministry of Infrastructure and Public Utilities, effectively returning the functions to line ministries.
The PSC argued that the transfer unlawfully interfered with its constitutional independence and sought to have the COM decision declared invalid. The commissioners maintained that the Executive had no authority to make decisions affecting the PSC’s functions under the Constitution and the Public Service Commission Act.
Representing the Government, the Office of the Attorney General sought to have the claim dismissed, arguing that the PSC commissioners had failed to comply with the notice requirements under the State Proceedings Act and that, as members of a constitutional body, they lacked the legal standing to sue the Government in their official capacities.
In her ruling, Justice Joshua found that while the PSC is an independent constitutional body, the management of Government vehicles and housing concerns Government assets and administration rather than the PSC’s constitutional responsibility for public service employment.
The Court also rejected the PSC’s argument that the Executive had interfered with its constitutional functions, finding that employment matters relate to issues such as recruitment, contractual duties, discipline and termination of public servants.
“Without the fleet/housing functions services can still be provided… Therefore I find that the two functions are not ’employment issues’ per se,” Justice Joshua said.
The Court ruled that the Prime Minister and the Council of Ministers acted within their lawful authority in transferring the functions and that the PSC commissioners did not have the legal standing to pursue the judicial review. As a result, both the judicial review claim and the accompanying application to stay the Government’s decision were struck out.
Justice Joshua also noted that although the Government failed to comply with Section 15(1) of the Government Act before making the decision, that procedural failure did not invalidate the transfer. However, she warned that similar failures in future could expose the Government to legal challenges and urged the Council of Ministers to seek proper legal advice before making comparable decisions.
The Court ordered the PSC commissioners to pay VT50,000 in legal costs to the defendants, which included Prime Minister Jotham Napat, Deputy Prime Minister and Minister of Finance Johnny Koanapo, the Council of Ministers and the Republic of Vanuatu.
Following the ruling, the Office of the issued a statement saying Prime Minister Jotham Napat welcomed the decision, describing it as an important affirmation of the Executive’s constitutional authority.
“This Government was elected to govern and to make decisions in the best interest of our people. This ruling confirms that the Executive has both the responsibility and the power to do so. We are slowly but surely restoring the proper balance and authority of Government,” he said.
Deputy Prime Minister Johnny Koanapo said the transfer of the fleet and housing functions was intended to improve efficiency and accountability in public service delivery.
“These are service delivery functions. They belong with the Ministries that build, maintain and manage them. The Court has now confirmed that,” he said.
The Office of the Prime Minister said the decision reinforces the constitutional authority of the Executive to allocate Government functions to line ministries and called on public institutions to work collaboratively to improve service delivery across Vanuatu.
