9 Sep 2010

Email exchange throws fresh light on PEDA case

4:50 pm on 9 September 2010

An email exchange between Ministry of Pacific Island Affairs officials appears to contradict the Government's version of events about a contentious Budget allocation.

The May Budget allocated nearly $5 million over four years to a company called PEDA to improve the economic wellbeing of Pacific people in Auckland.

The Government was criticised for providing money to a private company without first calling for tenders. But it argued that PEDA had not been chosen as the sole provider because the allocation was dependent on the successful negotiation of a purchase agreement.

However, Radio New Zealand's political staff have sighted an email between two ministry officials that refers to the "email trail from Treasury that started on March the 18th, when they told us that ministers had approved the $1.2 million for PEDA".