[4][5] In November 2008, Prime Minister Edward Natapei suspended him from the Vanua'aku Pati for signing a failed motion of no confidence against him.
[10] On 4 March 2011, the Vanuatu Daily Post accused him of having led a group of "thugs" into the newspaper's offices, arriving in a government-registered vehicle.
The Daily Post reported that Iauko threatened to "break [the] face" of editor Royson Willie, and stood by and watched while his "thugs" strangled and kicked publisher Marc Neil-Jones.
[11][12] Iauko later gave his side of the story to The Independent, saying he had indeed confronted Neil-Jones on the premises of the Daily Post, because he had "had enough" of that newspaper's "unfair and unbalanced" reporting.
[14] In early April, it was reported he would appear in court, on charges of "inciting and abetting assault and unlawful assembly", and that "the government of Sato Kilman continue[d] to face criticism for not taking any action to discipline its Minister over the alleged assault which ha[d] prompted outrage among regional media organisations and strong statements from various foreign diplomats".
[19] This lasted for only a month; on 16 June, the Kilman premiership was itself voided on constitutional grounds by the Supreme Court's Chief Justice Vincent Lunabek, and Iauko lost office once more.
[21] After an adjournment of the case at the request of the defence, it was reported that Iauko would appear in court on 10 June, on charges of unlawful assembly, trespass, intentional assault and threatening.
[24] In late 2011, Transparency International Vanuatu published an article "detailing corrupt practices in which Mr Iauko was allegedly involved".
TIV president Marie-Noelle Ferrieux-Patterson told the press that Iauko had responded by coming to Transparency International's office "threatening to throw staff out the window and burn their building down".