Rotorua MP Todd McClay on his Auditor-General request for an inquiry into public funding given to Visions of a Helping Hand. Video / Andrew Warner
Rotorua MP Todd McClay has asked the Auditor-General to do an inquiry into public money given to a trust run by controversial emergency housing figure Tiny Deane.
Deane, chief executive officer of Visions of a Helping Hand Trust, has welcomed the scrutiny, saying he has nothing to hide and he is sick of people running him down.
Visions was paid more than $15 million in the past two financial years to look after several contracted emergency housing motels in Rotorua. Visions contracted Tigers Express Security Limited, a company owned by Deane, to provide security at the motels.
The Government has previously said it allocates $6720 a week for every contracted motel’s onsite management services.
McClay told the Rotorua Daily Post Weekend his request was to ensure taxpayer money had been used appropriately in relation to the two organisations.
In June this year, Raymond Deane — locally known as Tiny — and his security business were found guilty of misconduct by the Private Security Personnel Licensing Authority.
The authority found Deane engaged two security guards — who he knew were linked to gangs — without proper security licences and let them keep working after their licence applications were declined.
It also found “deficiencies” in Deane’s management of the security company, that he breached the Private Security Personnel and Private Investigators Act 2010 and his “failures and misconduct” meant he was “not suitable to be the managing director and sole officer of a security company”.
The decision said Deane’s actions were in conflict with the Ministry of Housing and Urban Development’s requirement for a clear separation between social support and security services.
The authority said Deane must sell Tigers Express, which had about 50 employees, by August 20 or risk his security licence being suspended or cancelled. This was later extended to October 3 after he said he had found a buyer.
Deane temporarily stepped down from Visions after the ruling to sort out the sale, returning to work on August 21.
In a letter to the Auditor-General this week, McClay said he requested an inquiry into $15 million paid to Rotorua emergency motel housing provider Visions of a Helping Hand Trust.
His letter alleged Deane knowingly employed people associated with gangs in his security business and McClay was seeking assurances “taxpayer money has been used appropriately and that there has not been any connection with gangs”.
He said given Deane’s involvement in both the trust and security company, and after the authority’s decision, he believed it was “extremely important that taxpayers and residents of Rotorua can have full confidence that government contracts and funding are lawful, that there is no conflict of interest, and that funds are being used appropriately”.
McClay said in the letter he understood Deane and Visions were also providing emergency housing accommodation in other parts of New Zealand.
McClay attached supporting documents showing several questions he had asked in Parliament around the issue which he said in the letter had left him “less than satisfied that proper process and due diligence” had been followed.
Visions of a Helping Hand Charitable Trust founder and chief executive Tiny Deane. Photo / NZME
Asked for comment, Deane told the Rotorua Daily Post Weekend “good on Todd, why not?”.
Deane said he asked the Auditor-General to do an inquiry into his own affairs last year when issues with the security business came to light. He said he wanted to prove to people he was not a “crook”.
“It is great that Todd has gone to the Auditor-General. When this went down I asked if the Auditor-General can do an audit. I am sick of people running me down and telling lies. I am a good person, man.”
Deane said the Auditor-General replied to his request.
“They came back and said they don’t need to do it.”
Deane said with it being election year, he understood why, in his view, McClay was making the request but he said it was difficult being accused of doing wrong when he was only trying to help people.
“I will open up my bank accounts, I have absolutely nothing to hide.”
A spokesman from the Auditor-General’s office said Deane requested an inquiry into his affairs in September 2022 but it could not be done because the Auditor-General only looks at issues relating to public organisations, not activities of private individuals or organisations. However, it could look at how public organisations manage funding relationships with other organisations.
The spokesman said McClay’s request had been received and was at the “preliminary work” stage of the request.
The Rotorua Daily Post Weekend asked the Ministry of Housing and Urban Development, which contracts the trust, for comment on McClay’s request.
In a written response, partnerships and performance general manager William Barris said as with any inquiry or audit relating to ministry responsibilities, it would contribute in any way requested.
Barris said the ministry actively monitored the trust’s contracts, as it would any provider. The trust’s social sector accreditation was confirmed in May, he said.
Ministry officials were working with the trust board to seek a satisfactory outcome relating to the licensing authority’s decision, Barris said.
It wanted the board to provide assurance contracted security services would comply with the Act and the contractual requirement to separate security and social service work.
Associate Social Development Minister Priyanca Radhakrishnan, who has the emergency housing portfolio, was asked to comment but her office referred the Rotorua Daily Post Weekend’s questions to Housing Minister Megan Woods. Woods’ office said it would leave the ministry to comment.
The Rotorua Daily Post reported in January Visions more than tripled its revenue in a year.
The trust’s annual performance report submitted to Charities Services showed its total revenue in the year to March 2022 was $12.37m, after the previous year’s $3.83m.
In the year to March 2022, the trust had 10 motels, 39 transitional properties and 71 community properties.
McClay’s supporting documents to the Auditor-General showed he asked Woods in Parliament on September 14 last year about security in motels. Woods confirmed service providers “procure” security services for motels they supported. The amount budgeted for onsite management services is $6720 per motel per week.
Kelly Makiha is a senior journalist who has reported for the Rotorua Daily Post for more than 25 years, covering mainly police, court, human interest and social issues.
