A lawyer for a South Auckland budgeting service alleged to have lost thousands of dollars belonging to beneficiaries denies the agency is being investigated by police.
But the Department of Work and Income said yesterday that it was "cooperating with the police as they conduct their inquiry" into Takanini Community Support.
Sheila McCabe, the Takanini group's lawyer, said a check with Papakura police had confirmed that no investigation was taking place.
The Herald yesterday reported the case of a Beachlands mother of two, Tania Turei, who said the agency had left her with $2000 in unpaid bills when it shut in June.
It had received her benefit payments, giving some to her as a housekeeping allowance and using the rest to pay her bills.
Ms McCabe said all client money had been paid out and an independent audit of the agency's accounts was under way. She said Ms Turei was now satisfied her account was accurate and in order.
Another budget service run by the same people, Families Are Us Community Support, closed on June 30.
Work and Income said it had received three "concerns" from former Families Are Us clients. Police last night would not comment on the status of any investigation.
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