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  •   Home > News > Business

    New Zealand pays $5.3 million to Samoa after sinking navy ship Manawanui on pristine reef

    The New Zealand government says it has done "the right thing" in offering a $5.3 million compensation payout to the Samoan government after its navy sunk a ship on a pristine reef off the Pacific island.

    6 October 2025

    The New Zealand government says it has done "the right thing" in offering a $5.3 million compensation payout to the Samoan government after its navy sunk a ship on pristine reef off the Pacific island.

    In a statement released on Monday, New Zealand Foreign Affairs Minister Winston Peters announced the payment following a request from the Samoan government and lobbying from the affected villages.

    "We have always said we will do the right thing," Mr Peters said.

    "We recognise the impact the sinking has had on local communities and acknowledge the disruption it caused."

    The announcement comes exactly one year after the ship, the HMNZS Manawanui, smashed into a reef and sunk off the coast of Samoa's Safata District, spewing diesel into the surrounding waters.

    All 75 passengers and crew survived.

    In what was a major embarrassment for the New Zealand Navy, an investigation found "a series of human errors" and "a lack of training and experience" led to the sinking.

    The ship was one of only nine in New Zealand's navy and was the first the country lost at sea since World War II.

    The surrounding villages were banned from fishing in the area for almost five months, and the Samoan government believed as much as 200,000 litres of diesel had leaked from the vessel after it sank.

    However, the NZ government played down that assessment, with its defence minister labelling it  "a little trickle". 

    The villagers affected have consistently called for compensation as the fishing ban meant many had no means of generating income.

    Now 12 months on, the New Zealand government says it has "responded in good faith".   

    The ABC has contacted village leaders in Tafitoala, the area directly affected, for comment on the compensation payout.

    There was no detail on whether the money would be handed out to the affected villages or how the money would be allocated.   

    However, village leaders say they were blindsided by the decision this year not to excavate the Manawanui, leaving it permanently lodged in the reef. 

    They have also complained about not being involved in the process and a lack of communication from both the Samoan and New Zealand governments. 

    Tafitoala elder Puleaga Visesio Patea Fatu told RNZ last week that the once-rich fishing grounds in the area had been destroyed. 

    "There is no longer any good fish here since the sinking of the boat," he said. 

    "Before the ship had sunk, we would be out fishing from Thursday, Friday, Saturday, and Sunday, [taking the catch] to the markets.

    "If we had five to six people who went out fishing, they'd all go out with coolers full or filled with fish but nowadays, there is nothing like that available." 

    A new government, absent leader

    Today marks the first day of parliament in Samoa after it elected a new prime minister, Laaulialemalietoa Polataivao Fosi Schmidt. 

    Laaulialemalietoa replaced the country's former leader and first female prime minister, Fiame Naomi Mata?afa, who was in power at the time of the sinking. 

    At the time, Fiame said she was in discussions with the New Zealand government over compensation for the incident, however she said they needed to wait for the full environmental damage to be assessed. And some in Samoa were critical of her government's perceived lack of action on the matter.   

    After winning last month's election, Laaulialemalietoa travelled to New Zealand for medical treatment and is not in Samoa for the country's first parliament sitting day.  

    He is also facing criminal charges today in Samoa's court.  

    The Samoan government has not yet commented publicly on the payout. The ABC has contacted the Samoan government for comment.


    ABC




    © 2025 ABC, NZCity


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