Nauru Justice Minister David Adeang

Nauru houses hundreds of Australia's asylum seekers and refugees on the island.

In an address to the Bali Process on People Trafficking in Bali, Adeang said Nauru had developed a robust processing system for those seeking asylum and a vibrant refugee settlement programme.

He said his government believed its system was world class and he said it was especially pleased with the newly set up status review tribunal which had just begun to hear submissions.

In a statement it further accuses New Zealand of attempting to undermine the island's national sovereignty and interfering in its domestic affairs.

The Nauru Justice Minister, David Adeang, claims the move is based on misinformation from Opposition MP Roland Kun and his wife, who he says have been lobbying the New Zealand Government.

He says any suggestion the Nauru justice system is not independent or that the rule of law is not being upheld is completely wrong and offensive to the country's judges.