Victor Rory appeared in court this morning after he was found guilty of the charges, which relate to money from the European Development Fund.
The grant, signed a decade ago, was designed to fund a series of renewable energy projects on small islands in Vanuatu.
But the generators were deficient, power poles were defective, and several promised projects were never delivered.
A Commission of Inquiry found it was tainted by incompetence, cronyism and corruption at nearly every level and US$875,000 is still unaccounted for.
Victor Rory is the first conviction that stemmed from the scandal, but the inquiry recommended that more than 20 people be investigated.
The Daily Post reported Rory will be sentenced on 23 April.
SOURCE: RADIO NZ