SFO probes childcare centres

Wayne Wright. Photo / Kenny Rodger

Our largest early childhood provider is the focus of a Serious Fraud Office inquiry over how it spends $30 million of taxpayer money.

Spokesman Adam Feeley confirmed the office was investigating Kidicorp Ltd because of the amount of taxpayer money that was involved.

KidiCorp looks after more than 9000 children at 100 centres across the country.

Feeley said the SFO investigation had been under way for just a few weeks.

"It's early stages for us. It does receive state funding so that is one factor we will have regard to." The inquiry comes after a nine-month audit by the Ministry of Education which included examining the way Kidicorp claimed funding for qualified staff.

Early childhood centres get more taxpayer funding if they have a higher percentage of qualified staff working directly with children. Centres with 80-99 per cent registered teachers get more funding than those with 50-79 per cent.

One early childcare source said it was frustrating for a centre to sit on 79 per cent when a few extra teacher hours could push it into a higher funding band.

The audit came after information was received by the SFO and passed to the ministry to be checked. It is understood that the ministry dedicated at least one senior auditor to checking claims for funding made by Kidicorp going back years.

A ministry spokesman said its study had led to handing back the "issue...to the Serious Fraud Office".

Minister of Education Anne Tolley was briefed about the SFO being asked to investigate.

Kidicorp owner Wayne Wright said neither himself nor members of the staff had been interviewed by the SFO.

"I haven't come across anything yet that causes any concern. They just keep asking for more information," he said.

Wright said: "We are not concerned about it. If ever they ask about information we give it to them."

A disgruntled former staff member was behind the investigation, he said. The employee was convicted of fraud last year, but repaid the stolen money.