Child Youth and Family (CYF) has asked police to investigate troubled Northland Maori health and social services agency Te Hau Ora O Te Tai Tokerau (Thott).
CYF has already lodged a High Court claim for $1.7 million in damages from Thott for not delivering on the Amokura (family violence) and Family
Start contracts.
The two contracts, together worth $2 million annually, were taken from Thott by CYF in August and the claim for damages was due to be heard in the High Court in Whangarei today.
The claim was lodged after CYF carried out a limited financial review of the two contracts.
CYF spokesman Stephen Ward said the review had been confirmed and had been passed on to police for their consideration.
Mr Ward would not comment further on the matter or the police investigation.
Thott lawyer Wayne Peters said earlier that Thott's books would stand up to any scrutiny and there was no evidence of any financial misappropriation of funds from the organisation.
Mr Peters referred inquiries on the police involvement to Thott board member Michelle Wi.
Ms Wi said she was not aware of the matter being referred to police and could not comment.
Fellow Thott board member Raiha Fredericsen welcomed the police investigation.
"If they find any wrongdoing those responsible should be punished for that and be made to pay," Ms Fredericsen said.
The police involvement is the latest in a string of problems besetting Thott.
Earlier this year month government contracts worth $1.2 million annually were also taken from Thott by the Ministry of Health.
The furore surrounding the organisation led to Thott chief executive Jolene Grace resigning and board chair Luana Murray being dumped by the iwi Thott represents.
Last week Taiira Awarau, appointed interim board chairman, resigned from the post, saying he could no longer work with the "dysfunctional" board.
Mr Awarau said the Government should urgently send in the Auditor General to carry out a full audit and investigation of Thott.
The Family Start and Amokura contracts are now being administered temporarily by Kirikiriroa Family Services Trust using staff from its Hamilton operation, plus a Family Start manager and an Amokura employee who previously worked for Thott.
- NORTHERN ADVOCATE (WHANGAREI)