Audit of Maori projects called for

By FRANCESCA MOLD political reporter

Opposition MPs are calling for an urgent audit of Government-funded Maori television projects after allegations of inappropriate spending and the collapse of two production firms.

It was revealed yesterday that an Audit New Zealand report last year raised concerns about accounting practices at Aroha Films, which was allocated $1.86 million for a drama series.

Questions are also being asked about Crown agency Te Mangai Paho's monitoring of failed production companies Dreamtime Entertainment and Slightly Off Beat, to which it had allocated $700,000 of taxpayer money to make Maori TV programmes.

National's broadcasting spokeswoman, Katherine Rich, said Te Mangai Paho had failed to keep track of taxpayers' money. "It's incompetence, sheer incompetence," she said.

Aroha Films was set up in 2000 by former television newsreader Joanna Paul, and Melissa Wikaere and Karen Sidney.

An audit was commissioned after a relationship breakdown between the directors led to suggestions of inappropriate spending.

A Sunday newspaper reported yesterday that the audit questioned whether payments were properly authorised. It suggested expenses were wrongly claimed twice and a speeding fine was written off as "equipment rental".

It was also reported that Aroha Films spent hundreds of dollars at a wine shop and a top Auckland restaurant and more than $10,000 in hotel bills, and that $94,000 was paid out in petty cash in four months.

Te Mangai Paho chief executive Trevor Moeke said yesterday that the audit had raised some concerns about how the directors of Aroha Films did business. This had been raised with the directors at the time.

There were also some issues raised about Te Mangai Paho's contract management, which it had since addressed.

But Mr Moeke said the key finding was that the funding had been used appropriately to make the drama series.

He said Te Mangai Paho was investigating the situation of the two companies it had funded which were having financial difficulties. Te Mangai Paho chairman Toby Curtis told the Herald that he would welcome an inquiry into the agency's processes, if it was considered necessary by the Government.

But he was concerned that underfunding of Te Mangai Paho meant workers would be stretched even further if they had to assist in such an inquiry.

Te Mangai Paho holds about 75 contracts with television, radio and music production companies.

"You can't go jumping over a cliff just because a couple of them went astray. But it doesn't hurt to look at what could have been done better."

Mr Curtis said there may have been some irregularities with Aroha Films' accounting processes, but Audit New Zealand had found nothing unlawful.

It has been alleged Te Mangai Paho knew DreamTime Entertainment was in financial trouble months before it defaulted on a $300,000 project for a children's programme.

Slightly Off Beat was paid $400,000 to overdub Maori on to Canadian cartoons but had gone into liquidation.

Ms Rich said creditors, including struggling actors, had been left out of pocket because of Te Mangai Paho's failure to act.

Maori Affairs Minister Parekura Horomia did not return calls yesterday.