Bill English is under pressure to explain why almost $5 million dollars of Pacific social funding was allocated uncontested to PEDA, a private company based in Onehunga. (File photo by Alastair Thompson.)

Pacific Scoop:
Analysis – By The Scoop Team.

UPDATED: Funding allocated for economic development in Pacific communities in the New Zealand Government’s Budget 2010 has become the subject of controversy within the Government as well as outside it.

In the original budget announcement, Pacific Island Minister Georgina te Heuheu said $4.8 million over the next four years to the Pacific Island Economic Development Agency (PEDA). The Treasury records confirm this. However Finance Minister Bill English’s office is backing off this deal. Other agencies now may well be able to contest for a share of the funds.

Pacific.Scoop reported on Parliament’s debate over this untendered allocation of funds to an almost unknown organisation and how PEDA secured the Government contract uncontested. Questions have been raised in Parliament over the quality of the application, the process, and advice against it from the Ministry.

On Friday evening (June 18) The Prime Minister John Key was drawn into the furore, acknowledging to Radio New Zealand (RNZ) that Pacific Affairs Minister Georgina Te HeuHeu and other ministers (a vague reference to Finance Minister Bill English) could have handled the issue better. RNZ also reported: “Now the Government says that if a purchase agreement cannot be secured with PEDA, other organisations can apply for the funding,” RNZ reported.

Bill English has defended the allocation in Parliament as a community initiative that should be supported and “not one dollar will be paid out unless all the accountability is met”.

The Herald now reports that Bill English’s office has backed further from the allocation, saying it is not specifically allocated to PEDA:

… a spokesman for Finance Minister Bill English told the Herald last night that Mrs te Heuheu “went too far” and the money referred to was a general allocation for Pacific development.

The allocation is summarised in the budget as “A total of $1 million supporting Economic Development programmes run in Auckland.”

However, Scoop would like to refer Mr English’s office to part 2.2 of the Information Supporting the Estimates of Appropriation 2010/11 (starting p184, or p10 of PDF). This lists an allocation of $1 million (excludes monitoring costs) per year for four years for services from the “Pacific Economic Development Agency”.

You’re welcome.

The Beehive, home of New Zealand's executive government. (File photo by Scoop's Lyndon Hood.)

Background

Minister of Pacific Island Affairs, Georgina Te Heuheu. (Photo, Pacific Scoop.)

Untendered Contracts: Why Was PEDA Funded?

The Minister of Pacific Island Affairs Georgina te Heuheu has some explaining to do after reports today that she ignored advice of “great risks” in awarding nearly $5 million to a company in this year’s Budget, Labour’s Associate Pacific Island Affairs spokesperson said. More>>

ALSO:

• Scoop – Parliament’s Questions and Answers – 17 June 2010
• Labour – Flimsy PEDA bid gets English sign-off
• PacificEyeWitness.com Out-Link – Debate Silenced at Radio 531pi; Efeso Collins Abruptly Removed

Pacific.Scoop: New Zealand: Govt’s $4.8 Million Package For Pacific EDA Questioned

Looks like you need to get the blurb yourself. Probably best to do that irrespective, actually. More>>

ALSO:

• Labour – te Heu Heu all over the show on PEDA
• Labour – Who is really behind the PEDA stitch up?
• Labour – te Heu Heu continues to dodge crucial questions
• Labour – te Heu Heu Failing To Explain PEDA Funding
• Labour – te Heu Heu’s “answers” spark more questions

Tendering Any? $4.8 Million For… Who?

New funding announced by the government will help to focus attention on priorities for Pacific people, says the head of the Pacific Economic Development Agency, JR Pereira. More>>

ALSO:

• NZ Govt – Economic development boost for Pacific people
• Labour – Transparency needed around Pacific Island funding
• PacificEyeWitness.com Out-Link – NZ Budget 2010 Pacific: Who is Pacific Economic Development Agency Ltd?
• PacificEyeWitness.com Out-Link – Pacific Radio Host Questions MP on Pacific Economic Development ‘Agency’
• PacificEyeWitness.com Out-Link – NZ Budget 2010: Documents Download
• Public Address Out-Link – Hard News: Chicken Soup