Rich Katherine: Questions for Oral Answer — Questions to Ministers 
Rich Katherine: Questions for Oral Answer — Questions to Ministers 
[Volume:619;Page:14797] 
5.  
KATHERINE RICH (National) 
 to the  
Minister for Social Development and Employment 
: Have Community Employment Group officials raised any concerns about the fraudulent use of funds by any groups receiving grants; if so what was the nature of the fraud? 
Hon STEVE MAHAREY (Minister for Social Development and Employment) 
: 
 There are currently four investigations under way concerning sums of money that may have been misappropriated within community organisations administering grants made by the Community Employment Group. Two of those cases have been referred to the police by the Community Employment Group and a third by the community organisation itself. The fourth case is currently being investigated by the Community Employment Group and will be referred to the police if appropriate. 
Katherine Rich 
: Is the Minister aware that his officials had serious concerns about the fraudulent use of signed blank cheques by the Maori Women’s Welfare League which received the largest Community Employment Group grant of $1 million over 3 years yet his officials chose not to audit the contract even though they were aware that it was “an obvious target for further questions”? 
Hon STEVE MAHAREY 
: I am aware that there have been discussions with the Maori Women’s Welfare League. If that member has accusations to make she may like to give them to me rather than to speculate here in the House. 
Moana Mackey 
: In light of the Government’s commitment to work in partnership with community and voluntary sector groups what has been done to improve grant and contractual funding arrangements? 
Hon STEVE MAHAREY 
: A great deal. The community and voluntary sector groups provide a huge range of vital community services that I think are agreed to by the entire House. This Government has undertaken a number of initiatives to support high-quality delivery and accountability. There are Treasury guidelines for best practice there is a partnership agreement between the Government and community sectors there is the establishment of the best-practice website that can be used the Office of the Community and Voluntary Sector assists groups there are outcomes-based funding pilots that simplify and align funding for those groups and of course there is the Charities Commission which will help with this issue as well. 
Dr Muriel Newman 
: In light of the ongoing controversies over dubious grants by the Community Employment Group its staff being involved in political matters and its long-term general manager now being the operational Minister can the Minister give a guarantee that no grants or funds have been used in any way at all to assist Labour Party members supporters or activities? 
Hon STEVE MAHAREY 
: I cannot be accountable for what happened under other Governments but I can say that is the case now. 
Katherine Rich 
: Can the Minister explain to the House how Community Employment Group funding to the Maori Women’s Welfare League to support local initiatives like “making earrings out of used bread tags” a hairdresser wanting to go to a hairdressing competition a gospel singer wanting to do a demo tape and a marae “self-sustaining water feature” contributes to community development and employment? 
Hon STEVE MAHAREY 
: I just say in answer to the member that we do have to be careful about these grants. For example she raised recently the issue of a grant for a website when that turned out not to have been the case. In other words I would urge the member if she does have concrete examples of funding being used in an inappropriate way to tell me. But she should not come here and speculate about an organisation that has a huge history of contribution to this country and besmirch its name. 
Hon Richard Prebble 
: I raise a point of order Mr Speaker. When the Minister is asked a question how can it possibly be addressing the question to basically get up and say he does not know what is going on in his own department and to ask the Opposition to tell him? 
Mr SPEAKER 
: If the Minister had got up and said that he would be out of order. But he did not do that. 
Hon Richard Prebble 
: In effect one finds that is what he did say if one listened to what he said. 
Mr SPEAKER 
: I do not agree with the member. 
Katherine Rich 
: Does the Minister support the use of Community Employment Group funding by the Maori Women’s Welfare League to seek advice for Work and Income clients about how they could set up a family trust with the aim of “safeguarding the income from their work without jeopardising their benefits”; if not what is he going to do about it? 
Hon STEVE MAHAREY 
: Once again I would urge the member to bring any accusations of that kind to me because—[ 
Interruption 
] 
Mr SPEAKER 
: The Minister gets a chance to answer and there will be further supplementary questions. I ask the Minister to carry on answering the question. 
Hon STEVE MAHAREY 
: It is very important to know that many people who go into part-time work and who are seeking to return to the workforce also do have eligibility for parts of the benefit system and advice of that kind can be helpful. 
Katherine Rich 
: I seek leave to table official documents released by the Minister to me which include emails from his officials where they cite concerns about fraud within the Maori Women’s Welfare League. 
Documents by leave laid on the Table of the House.