March 20, 2014
Fox defends Kohanga money go round
A spokesperson for the Kohanga Reo National Trust is defending the failure of an independent financial review to look into spending at a trust subsidiary.
Derek Fox says Ernst and Young was asked to look at whether public funds paid to Kohanga Reo for early childhood education were at risk, and its report showed they were not.
Hours after releasing the report, ministers Hekia Parata and Pita Sharples asked the Serious Fraud Office to investigate the subsidiary, Te Pataka Ohanga, based on information they had received from a trustee.
Te Pataka Ohanga buys resources and services such as insurance on behalf of individual kohanga.
Mr Fox says because of the way the Kohanga Reo National Trust is set up, any money paid to it is no longer public money.
"There are 5000 of these people providing early childhood education around the country; 4999 of them get paid up front. Kohanga delivers the service first and then gets paid, and the public nature of those funds, once it is paid to the Kohanga Reo, that changes. It is no longer public funds," Mr Fox says.
He says Kohanga Reo trustees accept there is a need for some change, and individual kohanga reo will be able to discuss this at a national hui in Turangawaewae next month called by King Tuheitia.
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