A damning audit of a $115,000 taxpayer grant to a Maori group for a regional television station has resulted in the contract and last $15,000 instalment being cancelled.
The Labour Department's Community Employment Group, disbanded in September, approved the grant to Te Reo Irirangi O Te Hiku O Te Ika
Inc (Te Hiku TV) in September 2003.
In March National MP Katherine Rich criticised the grant after she revealed CEG also gave $26,000 to two Christchurch women to travel the world to study hip-hop.
The TV grant, to a group headed by Hone Harawira, son of veteran Maori activist Titewhai Harawira, was noted by CEG as being for a Maori TV station in the Far North.
Mrs Rich used that to criticise the grant because the Government was also funding the nationwide Maori Television Service. The department's audit, which was monitored by the Audit Office, makes a raft of criticisms about the process including:
* That $90,000 of the money should never have been approved because it failed to meet grant criteria.
* The CEG regional manager failed to adequately document her support for the recommendation to approve the grant, including failing to show how the project would not adversely affect local businesses and therefore displace other paid workers.
* Excessive upfront payments were made and the instalment plan was not linked to risk.
* Ineffective monitoring, including no efforts to determine if the station's business plan was being implemented as planned.
The report noted that as of September 22 the channel had not broadcast due to delays in getting a frequency, but broadcasting had now started in a "testing capacity" for four hours a day.
Department chief executive James Buwalda said in a statement that the department did not think it likely Te Hiku TV would become a "sustainable community enterprise", so the final instalment of $15,000 had been cancelled along with the letter of agreement.
A spokeswoman for Social Development and Employment Minister Steve Maharey said last night the poor processes highlighted was a reason the Government decided to disband CEG.
