Vanuatu's Millennium Challenge Fund Programme Director, Lenox Vuti, has been barred by the US government from attending a road project ceremony on Efate.
Mr Vuti was the key person behind the successful road project, which proceeded with a groundbreaking ceremony in Emua village in North Efate.
Washington did not give any reason for the decision.
The US has told the Vanuatu government to remove him from the project or it will no longer release any more money for the project.
18 countries have become the recipients of the US government fund, with Vanuatu the only in the Pacific.
Mr Vuti says he has not received any letter of suspension or termination and he continues to drive the official vehicle.