Ministry looks into claims health funds missing

A decision on whether to launch an official investigation into the the disappearance of over half a million dollars by a Kapiti runanga is on hold while the Ministry of Health reviews the case.

Waikanae's Te Runanga O Te Ati Awa Ki Whakarongotai has been asked by Capital and Coast District Health Board to return $590,000 of unaccounted health funding.

The Dominion Post said today the runanga was in chaos, with several different groups claiming governance.

Daniel Mullen, deputy chairman of one of the groups, rejected the DHB's figures and said the money was not missing.

Richard Orzecki, who chairs a rival group, said there had been no runanga governance meetings since 2008 and no one knew what was going on.

Retired Detective Inspector Doug Brew, who is acting for police, said an official investigation had not been launched but there were issues that could require criminal investigation, including funds being "siphoned off" into a failed cafe and craft shop at Lindale on the Kapiti Coast.

"Although it has been reported there is a police investigation ,it really is a scoping process whereby police have yet to decide," he said.

"It's all very well for people to say a million dollars goes missing, but we need some detail and there needs to be some preliminary investigation."

Mr Brew said he had spoken with Mr Orzecki but a decision on the investigation would not be made until the Ministry of Health had reviewed the case.

He would not be making that decision and would not involved in the investigation, he said.

Capital & Coast Maori Health Development accountability manager Jim Wiki told The Dominion Post an official complaint would not be made because the failings were due to naivety and inability.

Included in the $590,000 was $200,000 invested as a term deposit, a $140,000 advance to the runanga, a $176,362 advance to the failed business, a $74,000 advance to Te Ati Awa Ki Whakarongotai Charitable Trust and a further $50,000 was used to pay "trade debtors".

- NZPA