The Prime Minister Akilisi Pohiva ordered an investigation into the funds which were meant to go towards the rebuilding of homes on Ha'apai.
The island group was hit hard by Cyclone Ian in 2014, leaving thousands homeless, but the reconstruction effort had been plagued with delays and 75 homes still need to be rebuilt.
The World Bank had been assisting with the rebuild.
The bank's Tatafu Moeaki said it wants to make sure the government investigation was done correctly.
