Vanuatu's Minister of Foreign Affairs has declared the appointment of Vanuatu's Trade Commissioner, Michael Kalmet last year as illegal.
The Minister, Ralph Regenvanu confirmed that the appointment was illegal to the Daily Post Newspaper.
The appointment was reportedly made by the former Minister of Foreign Affairs, Bruno Lengkon.
It caused a public outcry when it emerged that the agreement involved the transaction of around $US60,000.
Mr Regenvanu said neither the Department of Foreign Affairs or his Ministry of Foreign Affairs had receipt of the transaction allegedly reached by two politicians.
According to the newspaper, Mr Lengkon has denied both meeting Mr Kalmet and the existence of any agreement.