On Monday, the Auditor-General announced an inquiry would be launched into the procurement and contract management practices of the children’s ministry.
“Oranga Tamariki administers and oversees a significant amount of public spending on contracting services to support tamariki, rangatahi, and their whānau.
“Concerns have been raised with our office about the processes Oranga Tamariki has followed to manage its contracts with social service providers, particularly its decision-making process for the 2024/25 contracting round.”
The inquiry would look at the extent to which Oranga Tamariki renewed, varied or allowed to expire contracts with social service providers for the 2024/2025 year.
As RNZ reported, in June, providers were give little notice that their funding from Oranga Tamariki would be reduced or discontinued as their contracts came up for renewal - risking the services they provided to those in need.
In August, the Herald reported Oranga Tamariki was discontinuing more than 330 service contracts following an annual review of contracted provider funding.
The Public Service Association (PSA) also welcomed the inquiry and described the funding cuts as “a botched and heartless process”.
“Oranga Tamariki failed to communicate with providers, many of which had built up services over many years,” PSA assistant secretary Melissa Woolley said.
“There was little warning, and they had salt rubbed into their wounds by the Minister for Children, claiming many were abusing the funds, labelling Oranga Tamariki a ‘cash cow’ for them.
“They deserved better.”
Julia Gabel is a Wellington-based political reporter. She joined the Herald in 2020 and has most recently focused on data journalism.