A state housing advocate has warned of more cases of corruption within Housing New Zealand which is investigating an accusation of an employee taking bribes.
The Housing Corporation says it has information that money was sought from prospective tenants for preferential treatment.
Piripi Gray, a community housing advocate in Porirua, says he believes such cases are common, but rarely reported because tenants fear losing their state houses.
Mr Gray says he has heard of two situations where tenants paid money to a family member of a Housing New Zealand employee to improve their chances.
He says staff from the bottom to the top of the Housing Corporation need to be investigated.
Housing New Zealand says the investigation began in January after it was told an employee was seeking money in return for preferential treatment for people who wanted a state house.
An employee has been suspended on full pay during the investigation.
Housing Minister Phil Heatley says Housing New Zealand acted swiftly to investigate the accusations and brought in the consulting firm KPMG to review the corporation's systems.