27 Jun 2012

Govt failing to check social service providers: NZ First

7:48 pm on 27 June 2012

New Zealand First leader Winston Peters has made allegations in Parliament of fraud and financial mismanagement by a Maori women's refuge that receives Government funding.

He has questioned why the Palmerston North refuge has had its contract renewed for another $80,000 despite an audit identifying serious problems.

Mr Peters says the audit shows the refuge made a loss of $109,000 for the year ended June 2011 and unauthorised transactions were made.

He put this question to Social Development Minister Paula Bennett, in the House.

Ms Bennett says she would need to see evidence of the alleged fraud and if it has happened she would expect the department to take the appropriate action.