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New Zealand has agreed to pay Samoa 10 million tala ($6 million NZD) in compensation for the environmental disaster caused when one of its navy vessels sank off the Samoan coast last year.

The HMNZS Manawanui, a $100 million specialist dive and hydrographic ship, ran aground during a reef survey off southern Upolu in October 2024. Commanded by Yvonne Gray, the vessel later capsized and sank, marking the first peacetime loss of a New Zealand naval ship.

Gray faced fierce criticism in the aftermath, with many accusing her of being a “DEI hire” after an inquiry found the incident was caused by human error, including the failure to switch off autopilot. Critics of diversity, equity and inclusion (DEI) hiring policies claimed Gray was appointed based on gender and sexuality rather than competence.

Foreign Minister Winston Peters confirmed the payout followed a formal request from Samoa’s government and acknowledged “the impact the sinking has had on local communities and the disruption it caused.”

Although the ship remains on the reef, authorities have removed fuel, oil, weapons, ammunition and containers from the wreck. Peters said New Zealand was collaborating closely with Samoa on future actions, with the “absolute priorities” being to minimise environmental harm and support the response.

A government inquiry in April concluded the Manawanui’s sinking was the result of multiple failings, citing inadequate crew training and weak leadership. The final court of inquiry report noted that the crew “did not identify risks related to the survey task carried out by the ship and that the supervision was not adequate.”

At the time of the disaster, Gray was credited by the mainstream media with “saving lives” when she ordered the evacuation of all personnel aboard the stricken vessel as it caught fire and began to list heavily.

Originally from Harrogate in Yorkshire, Gray took command of the Royal New Zealand Navy’s dive, hydrographic and salvage vessel in December 2022.