Six More CYF Providers Are Under Investigation

Friday 13 Sep 2002 Dr Muriel Newman Press Releases -- Social Welfare

Another six providers contracted by CYF are under investigation for financial and performance problems, ACT Social Welfare Spokesman Dr Muriel Newman said today.

"Te Hau Ora o Te Tai Tokerau (THOTT) is not the only organisation receiving huge sums of public money through CYF that has caused concern.

"Yesterday in the Social Services Select Committee, CYF chief executive Jackie Pivac reported that there are at least six more providers that the department is concerned about. These organisations are now being monitored and their performance checked.

"Yet in response to my recent question in the House "does the Minister have concerns over the management of any other organisations that contract to the Department of Child, Youth and Family Services", the Minister of Social Services, Steve Maharey, answered "no, I have no specific concerns at this time about any organisation that we fund". The Minister is clearly out of touch with what is going on in his department.

"The THOTT debacle has shown that by adopting race-based policies that allow only Maori providers to apply for social service contracts to Maori, instead of putting ethnicity aside and choosing the best provider for every job, this Government is putting both clients and millions of dollars of taxpayers' money at risk.

"With the new Chairman of THOTT now resigning amid claims of "fraud" and "corruption", I believe it is time that a serious fraud office investigation is considered", Dr Newman said.

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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