The Solomon Islands Ministry of Finance and Treasury has issued a statement apologising to the European Union for what it says are false allegations made by the Malaita Ma'asina Forum.
It says last week the Forum claimed that EU funds had been diverted to building 50 houses at Noro in Western Province.
The Ministry said it doesn't have any knowledge of an EU funding of 50 houses.
It says EU funds have always been for specific purposes, and the governance arrangement for a change in scope on any project is done with thoroughness and rigour.
It says a diversion of funding to build 50 unjustified houses in a small township is simply illogical and wouldn't have passed the scrutiny of either the EU and the ministry.