John Tamihere's Waipareira Trust has lost a court battle with the Crown over the cancellation of a $1.4 million "Family Start" child welfare contract.
Social Development Minister Paula Bennett said the High Court decision vindicated her department's decision to cancel the contract despite potential political opponent Mr Tamihere's attempt to turn the affair into a "personal attack" on her.
The West Auckland urban Maori authority's $1.42 million a year contract to teach and reinforce good parenting techniques in order to minimise the risk of child abuse was among five canned in March this year.
However, in May following mediation the ministry agreed to review its decision. In June, after a visit to the trust, the ministry said its original decision would stand.
The trust challenged that in the High Court, arguing the decision was not fair or reasonable and failed to take proper account of an additional external report.