New Zealand Government to Disburse $10 Million Compensation for HMNZS Manawanui Sinking
Apia, SAMOA — On December 22, 2025, Prime Minister Laaulialemalietoa Leuatea Polataivao Schmidt announced that the New Zealand Government will disburse a compensation payment of 10 million tala (approximately NZD 6 million) to individuals and businesses affected by the sinking of the HMNZS Manawanui. This decision comes after more than a year of waiting for compensation following the vessel’s sinking off the southern coast of Upolu on October 6, 2024. The funds, which were transferred to the Samoan government in May 2025, will be distributed directly to the communities in the districts of Siumu and Safata, which suffered significant economic losses due to the incident.
The Prime Minister emphasized the importance of a fair and proportionate allocation of funds based on the verified impact on each household and business. He instructed the Cabinet Special Committee to conduct final consultations with the affected villages before finalizing the distribution plan. Strict accountability measures will be implemented to prevent any duplication of payments, ensuring that the compensation process is transparent and equitable.
Impact of the Sinking on Local Communities
The HMNZS Manawanui sank after crashing into the Tafitoala reef, causing a spill of diesel and debris into the surrounding waters. This incident has had a devastating impact on local communities, particularly in Siumu and the villages of Safata 1 and Safata 2. Residents have reported a significant decline in marine resources, which are vital for their livelihoods. Seasonal fish, such as igaga and lupo, along with sea cucumbers, have become increasingly scarce, leaving families struggling to meet their basic needs. Many households that previously relied on selling seafood at roadside stalls have faced severe disruptions to their income.
In response to the ongoing challenges, representatives from Safata 2 recently met with the Minister of Finance to request local management of their share of the compensation funds. However, Prime Minister Schmidt clarified that the Samoan government will retain responsibility for overseeing the distribution process. This centralized approach aims to ensure consistency and accountability across all affected districts.
Concerns Over Compensation Adequacy
While the compensation package has been formally endorsed by the Samoan government, some local leaders express concerns that the amount may not adequately cover the extensive damage caused by the sinking of the HMNZS Manawanui. Atanoa Tusi Fa’afetai, a chief from the village of Maninoa, highlighted the need for additional compensation, particularly if the wreckage remains on the reef. He argued that the New Zealand government should consider the ongoing losses in fisheries and tourism, which are critical to the local economy.
The New Zealand Government has stated that the agreed settlement is final, and no further payments will be sought. However, the sentiment among some matai from Siumu and Safata suggests that the community’s needs may not have been fully addressed. As the compensation process unfolds, the focus will remain on ensuring that the affected individuals and businesses receive the support they need to recover from this significant maritime incident.
