KEY POINTS:
A Waikato association which had a Government contract to encourage children into early childhood education terminated is under investigation by the Serious Fraud Office.
The Waikato Pan-Chinese Association was given a $75,000 contract under the Government's programme to encourage greater participation in early childhood education, but it was terminated 11 months later, according to documents given to National MP Katherine Rich under the Official Information Act.
The documents said it was terminated for "poor performance, inaccurate reporting, and organisational management" and noted the association was also under investigation by the Serious Fraud Office.
In Parliament yesterday, Minister of Education Steve Maharey said it was unclear whether the investigation related to the terminated contract because the SFO did not disclose the reasons.
He said the contract was terminated on December 8, 2006, "because of a variety of poor performance in the contract" and only $25,000 of the $75,000 contract was actually paid to the contractor.
He said the SFO became involved on December 5, 2006, after a complaint from the public. The ministry was told of the investigation on January 30, 2007, but he did not know why the investigation was being pursued because the SFO does not disclose its reasons.
Mr Maharey said he would investigate another terminated contract of the programme - that of Te Roopu Awhine ki Porirua - for which the file notes said "their contractor has apparently sabotaged the contract and removed some files".
Ms Rich also queried the overall management of the project, which began in 2004, saying an evaluation found there was only a 42 per cent rate of achievement of targets by contractors and "serious gaps and inconsistencies in the type of data collected".
The papers showed a further two contractors had not had contracts renewed because of their performance.
He said there were areas to tighten up on in the programme, but it was more effective at encouraging participation than if it did not exist at all.
Mr Maharey said the ministry regularly monitored those with contracts and helped them improve.
"Where it is not possible to improve it, the ministry takes the action it took in the case of the Waikato Pan-Chinese Association."
