A Maori women's refuge is still receiving taxpayer funding despite an audit report showing evidence of fraud, parliament has been told.
NZ First leader Winston Peters says Te Roopu Whakaruruhau o Nga Wahine in Palmerston North has had its $80,000 a year Government contract renewed through to June 2015, and he wants to know why.
"The audit report shows this refuge was a family money-generating scheme - five of the eight workers are direct family, it's been their gravy train," he said.
"Why have no charges been laid when the word `fraud' is screaming from the audit report - in fact it has a sub-heading titled `fraud'."
Mr Peters says the audit report for the year ended June 2011 shows:
- Family members paid their fines with public money
- They overpaid themselves for leave
- They travelled overseas on the taxpayer
- They paid themselves bonuses
- They did not pay GST for several years.
Mr Peters questioned Social Development Minister Paula Bennett about the refuge and asked why its contract had been renewed.
Ms Bennett said the Government had about 4300 contracts with 2300 welfare providers and she wasn't aware of funding for "that particular organisation".
The contract was awarded under the Whanau Ora Maori welfare scheme, introduced by the Maori Party through its support agreement with the Government.
Mr Peters has previously revealed questionable funding for Whanau Ora funded organisations.
"Tens of millions of dollars are flowing into these so-called providers, and armies of providers are heading for the pork barrel," he said.
"A whole industry has been spawned."
NZN