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 Su’a William Sio said.

“It has been reported that the Ministry of Pacific Island Affairs (MPIA) warned the Minister against awarding the Pacific Economic Development Agency Ltd (PEDA) $4.8 million dollars in Budget 2010, but Mrs te Heuheu and other Ministers ignored those warnings,” Su’a William said.

“More questions also remain around who was involved in the bidding between PEDA and senior Government Ministers.

“MPIA appears to have had serious concerns around PEDA’s Budget bid, its ability to deliver what it promised and whether it had the community networks to ensure maximum value for money.

“Despite these clearly defined risks, a lack of an open tender process, and the lack of a formal and robust agreement, the Government handed nearly $5 million dollars to PEDA.

“This significant financial commitment was made off the back of what can only be described as a flimsy Budget proposal from PEDA. The process around the funding of PEDA has been a shambles and the Pacific community deserves better.

“Georgina te Heuheu needs to explain how PEDA will operate, how the Pacific community in Auckland will benefit from the PEDA funding, and why PEDA was preferred over other more well established organisations.

“Today the Minister also said she hasn’t ruled out other providers being funded in this case. She needs to explain whether PEDA will administer that or whether the MPIA will ensure the Budget funding made available to PEDA will be open to other organisations.

“It’s time for Georgina te Heuheu to tell Kiwis why PEDA was really funded.”

ENDS

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