MP grilled over $4.8m welfare contract

Pacific Island Affairs Minister Georgina te Heuheu faced another grilling in Parliament. Photo / Supplied

No money has yet been given to a little-known organisation which was allocated $4.8 million in the Budget to enhance the living standards of Pacific Island people in Auckland, Parliament was told yesterday.

The controversial Budget allocation was to the Pacific Economic Development Agency (PEDA), which opposition MPs say has no track record.

Ministers have previously been questioned about why the contract wasn't put out to tender, and yesterday Pacific Island Affairs Minister Georgina te Heuheu faced another grilling in Parliament.

"No money has gone to that organisation at this point, and if any money passes to it the Government will make sure that there is an appropriate purchase agreement in place that is transparent and that will achieve the objectives the Government is seeking," she said.

Labour MPs said the money had clearly been allocated to PEDA in the May Budget but Ms te Heuheu insisted it hadn't actually received any of it.

MP Su'a William Sio later accused Ms te Heuheu of "a farcical defence of the Government's dodgy processes".

He said he thought she had something to hide.