Nauru has withdrawn $30.5 million from a trust established with the Australian government under the NZYQ deportee deal, Senate estimates has heard, providing a rare glimpse into how the funds are being used. 

The initial payment includes $1.9 million directed to business travel, entertainment, as well as plant and equipment purchases associated with the department that supports President David Adeang.

The largest portion of the funds, $19.8 million, will be used to pay off a loan that allowed the country to expand its national airline fleet to seven Boeing aircraft.

Nauru will receive a total of $63 million in the first year of the deal, struck in September, which is estimated to cost $2.5 billion over 30 years.

The Australian government has repeatedly refused to publicly release the specifics of the third-country resettlement agreement for up to 324 non-citizens, but details of the initial payment were tabled by the Nauru government in late March.

Under the ongoing arrangement, the $388 million trust is managed by a committee, with Australia appointing Ben Biddington while Nauru has appointed its Secretary of Finance Damon Adeang, the president’s son.

Greens senator David Shoebridge questioned whether Mr Adeang had disclosed a potential conflict of interest, having been appointed an ex-officio director on the board of Nauru Air Corporation in October 2025.

“Not at the time, no,” Mr Biddington said on Thursday.

“Did he tell you one of the principles of the funds was to benefit the air cooperation?” Senator Shoebridge asked.

Mr Biddington said he would need to review the minutes, with nine meetings of the committee taking place to date. 

Senator Shoebridge questioned the disbursement of funds, with Nauru’s March budget update revealing $1.68 million would be used for ministerial travel.

Some was also directed to salaries across internal affairs, department of transport, border control, public health, the justice secretariat and front-line workers.

Mr Biddington said money directed into the fund was “for the broad benefit and uplift of Nauru”.

Department of Home Affairs officials revealed the Australian government payments will be audited annually, as well as reviewed every five years.

However, an auditor has yet to be appointed.

“The intention is to create a stream of funding,” the department’s head of immigration, Clare Sharp, told the Senate hearing.

“Nauru can then use it to build its economic base and its future economic sustainability as a country.”