A little-known organisation contentiously allocated $4.8 million in the May Budget has wound up with no money at all.
At the time, the Government was criticised for awarding the money to the Pacific Economic Development Agency without following a tender process.
Documents obtained by Radio New Zealand showed the Ministry of Pacific Island Affairs advised against allocating the money to the agency, which had little profile in the Pacific community.
The ministry's chief executive, Colin Tukuitonga, says a tender process has now been completed and the organisation missed out.
He says the money has gone to four organisations with a track record in the development of education and employment for Pacific Islanders.