Cash given to former MP Tukoroirangi Morgan to make a television documentary series will be investigated.
Mr Morgan's firm, Astraeus, won $1.84 million of public money from the Maori broadcasting agency, Te Mangai Paho, to make 10 programmes for the new Maori television channel.
Mr Morgan said yesterday that it was Maori-bashing to ask questions about the involvement of at least three other family members in his production team.
Mr Morgan's wife, Carolyn, is production manager and his children, Reikura and Kawariki, are presenters.
Te Mangai Paho said it was comfortable about the contract, but to ensure public confidence it would hire an auditor for a routine check.
Prime Minister Helen Clark suggested yesterday that a Government watchdog should investigate the affair.
She said that while she knew no more than the public about the matter, Te Mangai Paho was an autonomous agency and open to public scrutiny.
"If there is any doubt about whether the money has been properly appropriated, then I would urge the Audit Office to look at it."
An Audit Office spokesman said no request from any quarter had been made to investigate the affair and "on the surface I couldn't see why we would".
Hours after the Prime Minister's comments, Maori Affairs Minister Parekura Horomia said that while Te Mangai Paho had "reassured" him about the process, it had decided to contract its own audit from Audit NZ. Audit NZ is the commercial arm of the Audit Office. It acts separately and can be hired to undertake audits.
Mr Horomia said Te Mangai Paho had decided to initiate an audit of the Hawaiiki project.
He was pleased, as people needed to have confidence in the process.
Te Mangai Paho chief executive Trevor Moeke said he had no regrets about the contract or its management by his agency.
He said the audit of projects was commonplace to ensure the process was working.
Audit NZ had not been contracted yet to do the job, which was expected to take two to three weeks to complete.
Mr Morgan was not available for comment after a fiery interview on National Radio's Kim Hill show yesterday morning.
Mr Morgan - who was dogged by controversy during his term as an MP because of extravagant spending in a previous job as director of the Aotearoa Television Network - denied nepotism and suggested instead "Maori-bashing".
"The implication is ... that people like myself can't even apply for public money. That's what you're saying and that's what every other press person is saying in this country."
- NZPA
Morgan's TV money under scrutiny
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