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Ōranga Tamariki has apologised using auction website TradeMe to find foster parents.
The ads, which have been removed, included descriptions of the tamariki and iwi affiliations.
Chief executive Grainne Moss says the ads were a mistake.
Minister for Children Tracey Martin says the website wasn't appropriate to find caregivers for children.
Debbie Ngārewa-Packer from Ngāti Ruanui says one of the tamariki was from the south Taranaki iwi, and Oranga Tamariki should contacted the iwi first.
With six in 10 children in care being Māori, iwi need to be part of the solution.
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