Maori trust in dark on inquiry

By JAMES GARDINER

A Government-funded Maori trust is upset that it was not consulted over the terms of reference for an inquiry by the Auditor-General into how it spends $6.6 million of taxpayers' money each year on education scholarships.

Secrecy surrounds an Education Ministry announcement last week that it was referring management and accounting practices of the contract between it and the Maori Education Trust to the Auditor-General.

Ministry chief executive Howard Fancy, who said in a two-sentence statement there was no suggestion of fraud, was not available for further comment last week or yesterday.

Mr Fancy's secretary said he was at a hui in Ngaruawahia and would be attending a tangi today.

Assistant Auditor-General Terry McLaughlin said the request for the inquiry came from ministry officials.

Ministry media adviser Christine Seymour refused to say what prompted the request for an inquiry.

Trust chief executive Doug Hauraki said the inquiry was initiated by the ministry and he was waiting to see the terms of reference.

"Because I administer scholarships on behalf of [the ministry] I will be included in any review that they'd want," Mr Hauraki said.

When told the terms of reference were published yesterday on the Office of the Auditor-General's website, Mr Hauraki said: "It's good to know that people like you have got it without us even approving it."

Education Minister Trevor Mallard has assured trust chairman Pita Sharples that the inquiry is not linked to Mr Mallard's new race relations portfolio or the Government's review of Maori policies.

Inquiry's tasks

* Examine the ministry's oversight of the scholarship programmes.

* Examine the trust's "internal control environment".

* Identify what money goes where and why.

* Check that the law has been complied with.

Office of the Auditor-General