Awatere Huata could continue work from her cell

Donna Awatere Huata

Convicted fraudster and former Act MP Donna Awatere Huata is likely to be asked to continue working on a reading programme for Maori children from her prison cell.

Awatere Huata has spent her first night in jail after an Auckland District Court jury found her and her husband Wi Huata guilty of five fraud charges and one of perverting the course of justice.

The couple faced a total of seven charges after the Serious Fraud Office said $82,000 was taken from the Government-funded Pipi Foundation and used for personal expenses, including a stomach stapling operation for Awatere Huata and school fees for their children.

Each was found guilty on four joint fraud charges and one joint charge of perverting the course of justice. Awatere Huata was found guilty of one additional fraud charge laid against her alone and found not guilty of another.

Wi Huata's brother, Ron Huata, said the couple's expected jail term would not stop the four-minute reading programme which formed the basis of the Pipi Foundation set up by Donna Awatere Huata in 1999.

He said the programme was still working well in schools in the Hawke's Bay.

"Just because Donna has been convicted does not mean to say we are not going to ask her or any others who can help run a programme that is going to help improve kids' learning.

"If she chooses to she can have a part to play in it in the future. We don't have any problem with that."

Mr Huata said the logistics of her being in jail and working on the programme should not stop her.

Mr Huata did not want to comment on the verdicts.

"If that is what the court has decided that is what the court has decided.

"People will just go around their normal lives as normal I don't think it is going to upset very many people."

He said his brother Wi and sister-in-law Donna were well respected and well loved.

The family would give Wi and Donna as much support as they could and make sure their children were looked after and also given as much support as they needed.

He said the children were living with his other brother.

"I am sure he will be trying to make sure the negative aspects of what happened doesn't affect them too much."

Mr Huata said both Wi Huata and Donna Awatere Huata were strong personalities.

"Both are strong enough to get over whatever has happened and I am sure they will move on."

He said he was sure Donna Awatere would "just deal with" her expected prison term.

The Serious Fraud Office is likely to ask for a long term for Awatere Huata when the couple appear in court again on September 30 for sentencing. She was remanded in custody but Wi Huata was freed on bail.

Ron Huata said the reading programme developed by Awatere Huata worked well and was a big help to Maori children with reading problems.

He said the family would soon visit Awatere Huata in jail and talk to her about what she could do to help herself in prison and the programme in schools.

"We will sit down and have a talk about how we can maintain a positive view on all things that have happened so far."

He said that may help her through the rough times in prison.

She was very committed to the programme and Maori literacy was her passion.

Former Act Party leader Richard Prebble said Awatere Huata's conviction for fraud would not help the party but he hoped the public would see Act did not stand for her behaviour.

"People will look at us and say at least the Act Party is true to its principles," Mr Prebble told National Radio.

"We would tear apart any other party that was doing this and when I found one of my MPs was doing it I took every action I could against her.

"I actually reported her to the Serious Fraud Office. I told them 'look she's a clever fraudster, I'm convinced this is a fraud' and I took all the actions I was able to take."

Mr Prebble said it was a simple case of greed, but was still a tragedy.

"She's a very talented woman who had a great deal to offer to the country and I think it's a simple case of greed.

"I had no difficulty as leader encouraging her in her literacy programmes. We all know that state programmes for literacy for Maori haven't worked well and I think the tragedy of this is not just for her, its her family it's a tragedy for Parliament, for Maori, for everyone."

Mr Prebble said fraud cases were difficult to prosecute but he never had any doubt of the pair's guilt.

Today Lockwood Smith, who was Minister of Education when the trust was set up in 1999, said he was "horrified" and "astonished" it kept getting taxpayer money without providing accounts and financial records for auditing.

The pair was charged with attempting to pervert the course of justice after reconstructing minutes and financial records after public allegations of fraud.

Dr Smith said the ministry needed to look seriously at its systems which allowed Government money to keep flowing into Pipi accounts.

He said the auditing and monitoring systems within the ministry appeared to be virtually non-existent.

"That is where some real questions flow on from yesterday's verdict. Yes, Donna Awatere was dishonest and fraudulently used money that was intended to assist children's learning.

"Why was it that none of our audit systems flushed out this abuse?

"There was a complete lack of follow up by the Ministry of Education in requiring audited accounts from the Pipi Foundation."

Dr Smith said the money kept flowing even though the ministry's audit system had failed badly.

"That is something the ministry has got to learn."

- NZPA