KEY POINTS:
Child, Youth and Family Services has suspended all referrals and begun an investigation into the trust responsible for the two 14-year-olds who allegedly shot at police at the weekend.
The announcement came as Parliament was told that one of the shots could have killed one of the two officers.
United Future leader Peter Dunne said during question time that an arresting officer who confronted one of the boys was standing 5m away from the .303 rifle when the boy pulled the trigger.
"The only reason that officer is alive today is because the rifle jammed."
Speaker of the House Margaret Wilson reminded the House that charges were before the courts and advised Associate Social Development Minister Ruth Dyson that she answer only a related question.
However, the minister said her advice was that Mr Dunne's report was correct. The boys absconded from bush accommodation on Sunday morning, allegedly stole guns and a car, and fired shots at Tauranga police constables during a pursuit through residential streets.
They left a course run by the Wairaka Kokiri Trust in the Bay of Plenty, which is contracted by CYFS to rehabilitate hardened young offenders.
Since the weekend the trust has come in for criticism from a former CYFS worker who said alcohol and drug use by youngsters on the course was common.
Because of this, CYFS announced yesterday that referrals to the programme would cease pending a full internal investigation into its activities. A separate police investigation into allegations of drug and alcohol consumption on or near its premises would also begin.
Meanwhile, two senior youth justice social workers have been sent to help supervise the remaining youths at Ruatoki.
CYFS promised its review of the programme would be released in full to the public. Yesterday more allegations emerged against the trust.
A source said there were suspicions of gang links to the trust, in which members were using CYFS funding for their own ends.
Many local CYFS staff had over the years been eager to close down its programme at Ruatoki, but decision-makers in Wellington had prevented this.
Added to the list of accusations was that trust staff did not have the necessary skills to help with rehabilitating hardened youth offenders.
"Many of the staff employed by the trust were clearly not trained or suitable to work constructively with challenging youth," the source said.
Beside drug and alcohol use, other "serious problems" included bullying and inadequate supervision.
"There was a strong suspicion that many of the [trust] staff were actually gang members and this was seen as a way of obtaining funds for the gang. Firearms were in the vicinity of the boys and on one occasion a lad was assaulted with the butt of a rifle."
A sister of one of the boys involved in the weekend's events said her brother hated his time at Ruatoki because he was physically and emotionally abused.
Head of Child, Youth and Family Ray Smith said he did not know whether staff had previously been aware of the types of allegations described.
He urged anyone with information to come forward.
"What is unhelpful when we try to investigate these matters is when comments are made but they are not able to be evidenced.
"This type of programme is more unique and it's a programme that's been really strongly supported by the local judiciary."
The source said decisions on the fate of the trust were made from Wellington's national office by people who had little or no background in working closely with young offenders.
"The other issue from a distance appeared to be political, with [Education Minister] Steve Maharey micro-managing these types of decisions and his total reluctance to close down programmes not up to standard," the source said.
