3. Hon ANNETTE KING (Deputy Leader—Labour) Link to this
to the Minister for Social Development and Employment
In light of reports that Taeaomanino Trust, which the Ministry of Social Development has given funding to, is under investigation by police relating to allegations of misappropriation of money, will she undertake a full inquiry into the activities of the trust; if not, why not?
Hon PAULA BENNETT (Minister for Social Development and Employment) Link to this
I have been assured that these allegations have been investigated by the trust itself, by Deloitte, and by the ministry’s contracting team. I have also been assured that no Government money was involved in the February 2009 fraud, that the staff member is no longer involved with the trust, and that there is a police investigation under way—I think it should be allowed to continue.
When did she become aware that the trust was under investigation by the police for the misappropriation of money dating back to March 2009?
Hon PAULA BENNETT Link to this
The fraud was first brought to my attention in February 2009 but the police investigation only recently via the newspaper.
Was she aware that there were serious issues of honesty being raised about the trust, before agreeing to half a million dollars for Family Start in May this year?
Hon PAULA BENNETT Link to this
As I indicated, in February 2009 it was drawn to the ministry’s attention that there were some allegations. It was followed up by three investigations that I am aware of. At the end of the day, the conclusion that they came to was that no Ministry of Social Development money had been involved in the fraud, and that the person was no long working there. When it came to administering a Family Start contract, the four top tenders were actually investigated by PricewaterhouseCoopers, and the Taeaomanino Trust was one that was allocated in Porirua.
Has she read the independent forensic report carried out by Deloitte for the ministry in November last year, which was damning of the trust, found numerous issues relating to honesty; if so, given that many of the same people are still at the trust, can she give an assurance to taxpayers that the money is now being used appropriately?
Hon PAULA BENNETT Link to this
I am not involved in the independent report. When I looked at the contract that was being administered via Family Start, my interpretation of it was that there was no need for ministerial intervention, and I felt that the allegations had not been proven—and that is what I did.
I raise a point of order, Mr Speaker. I am sure you heard my question. I asked whether she had read the independent forensic report carried out by Deloitte; if so, given that the same people are there, can she give an assurance that taxpayers’ funding is now being used appropriately?
Mr SPEAKERI think the Minister responded to the second part of the question. Because there were two parts to the question, she did not have to comment on whether she had read the report. But I think she did give the assurance to the House that she is satisfied that this outfit will be utilising taxpayers’ money effectively under the contract involved. But if I have got that wrong the Minister is free to correct me.
Did she provide the Deloitte report to the Minister responsible for Whānau Ora before that Minister announced the trust as a whānau ora provider last month, with up to $1 million of taxpayers’ money at stake; if not, why not?
Hon PAULA BENNETT Link to this
I do not have the Deloitte report in front of me, but my understanding is that it did not find allegations of fraud—that is in there, just to give some clarification of that. The Minister responsible for Whanau Ora has made decisions about who should do that. I think they will do an outstanding job, as far as initiating those sorts of programmes for Māori, and I welcome them.