Gumboot charity's links to National questioned after $24m funding boost
Thursday, 23 May 2024
On Wednesday it was announced the I Am Hope charity founded by Mike King will be funded $24m over four years to provide counselling services.
The now-chair of I Am Hope donated $7,000 to the National Party in 2023, and $20,000 in 2020.
Board member and recently-departed CEO Troy Elliott sought National’s candidacy in Botany in 2019.
Questions are being asked about the charity’s close ties with National, and whether there was enough transparency over the contract process.
The chair of the I Am Hope Foundation donated $27,000 to the National Party prior to the past two elections, and its just-departed CEO sought the National Party candidacy for Botany in 2019, raising questions over close ties between the charity and the senior coalition partner, in the wake of a $24m funding announcement.
I Am Hope chair Naomi Ballantyne and founder Mike King joined Deputy Prime Minister Winston Peters and Mental Health Minister Matt Doocey for Wednesday’s announcement of the funding over four years for the delivery of counselling through Gumboot Friday for young people aged 5 to 25.
The commitment completed an agreement under the National-New Zealand First coalition agreement.
“This is a serious investment in a frontline service that has proven to directly deliver to young people who need help the most,” Peters said.
“This is where investment is needed, and this is where our direct investment is going.”
Ballantyne, who had a long and successful career in the life insurance industry, made three donations to the National Party in 2023, totalling $6840. In 2020 she donated $20,600.
At Wednesday’s announcement of the $24m funding injection she said, “I am just so grateful … for the Government supporting such an incredible organisation.
“I am humbled by the work that Mike and his team do, and delighted that this money will help them do more.”
Labour mental health spokesperson Ingrid Leary said Ballantyne’s donations were “disturbing” in the context of the funding announcement.
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“Is this how NZ works now — rich people can donate a few thousand to get their charity a big contract and small community organisations don’t get a look-in?
“It’s tin-pot politics that makes a mockery of fair process and creates mistrust in our democratic systems.”
Ballantyne rejected any suggestion she had influence over the funding decision.
In a statement to Stuff she said, “I had only just been approached by Mike King to consider becoming the I Am Hope Chair as the initial announcement about the government funding was made by the new coalition government, so I had absolutely no influence over that decision,” referencing the $6m annual allocation announced in November last year as part of the Government’s coalition agreement.
“Mike’s previous Chair Sir Ian Taylor had resigned and I suspect Mike chose me because he knew he needed a greater level of business and governance experience to meet the expectations that would be required for any recipient of government funding,” Ballantyne said.
“I have not spoken with anyone from any party about this funding until yesterday’s meeting with Minister Doocey relating to the announcement. I have been working with the Director General responsible for Mental Health, Robyn Shearer, to determine the reporting requirements that we will be required to meet in the contract, as you would expect of me in this role.”
In response to questions from Stuff, Doocey said: “Naomi Ballantyne became Chair after the coalition Government was formed. Any donations made to National by, or any association with, people involved in I Am Hope has had no bearing on the coalition agreement to adopt NZ First’s policy to provide government funding to Gumboot Friday. This decision was made entirely on the merits and success of the organisation.
“This was a NZ First policy that was agreed to by National during the coalition negotiations. We are entirely comfortable with the investment – indeed, we are proud that more young Kiwis will get access to counselling.”
Recently-departed I Am Hope chief executive and current board member Troy Elliott, whose late father John Elliott was a National MP, sought the National Party candidacy for the Botany electorate in 2019, but was defeated by now-prime minister Christopher Luxon.
In a statement to Stuff, Elliott said: “Mike has been advocating for funding from previous governments for many years. This current funding was actually part of the New Zealand First coalition agreement, not just National.
“I did stand for selection for Botany and missed out, and have not sought selection since, and have no current intention to do so in the future.”
Leary said she was not questioning the charity itself but had concerns about the process.
'Gumboot Friday is a reputable organisation which has a role to play in building youth mental resilience, however the way the National-led Government has done this deal jeopardises the wider work that needs to be done to improve youth mental health.“
She said in spite of numerous parliamentary questions and Official Information Act requests she had received no clear answers about the procurement process.
“I am no closer to seeing which recognised government process was used to procure what turns out to be a contract for $24m of mental health services in a fair, transparent way, giving value for money and ensuring appropriate standards of clinical care.”
Kaiwhaihua at NGO Changing Minds, Jodie Bennett, said: “Gumboot Friday has its place and we see this as a positive investment.”
But she said there was concern within the sector around approving a significant amount of funding without observing an official RFP (request for proposal) process.
“Investment into mental health and addictions needs to be a fair process. It feels as if the process is stacked in favour of one organisation over the many others which also do amazing things every day, and could so so much more if only the funding allowed for it.”
During a parliamentary debate in April, Doocey responded to a question from Leary about transparency by saying that, “This Government has made a coalition agreement to fund Gumboot Friday, and, I would expect, when that decision is made, then the proper procurement approach would be taken”.
“Funding it this way is just plain wrong,” said Leary. “To make an announcement and then ‘do the procurement’ is completely back to front. It annuls any possibility of a fair process — and a coalition agreement is a political paper, not a procurement process, regardless of what the minister might say.“
On Thursday, Doocey told Stuff: “We know that mental health is the biggest issue facing young people in New Zealand and it is disappointing that the Opposition is suggesting it does not support investment for Gumboot Friday.
“It is a shame Labour appears to want to cut the funding, which would mean many young Kiwis would miss out on the counselling services they desperately need.“
There are further concerns though from within the health sector that there is “no plan” to deliver the services.
An email from a New Zealand First staffer, provided to to Stuff, said “With the heartening news of the $24 million dollar boost for Gumboot Friday over the next 3 (sic) years…that was campaigned on by NZ First in 2023, we are reaching out to the sector and looking for an opportunity to hear firsthand how this could help.
“We made the commitment to this funding within our coalition agreement, so would like to hear what more needs to be done.”
At Wednesday’s announcement, Doocey said every dollar invested in Gumboot Friday resulted in a social return of $5.70. He did not cite the source of that figure, although it had been previously quoted in National’s 100-day plan and in its campaign material ahead of the 2023 election as coming from a “social impact assessment” carried out by Impact Lab.
Impact Lab was co-founded by former National leader Sir Bill English, who is also the company’s chair.
A source said that while English was respected and recognised methodologies would have been used, if the report was commissioned by I Am Hope it was not independent.
Elliott confirmed to Stuff that the Impact Lab report was commissioned by I Am Hope. “It’s important for charities to show that the work they are doing makes a difference and this does show that,” he said.
In September 2023, Elliott set up a company, MKTE Limited, in partnership with Mike King. The company’s purpose is not yet clear, though its industry classification is “security system installation”.
“The public will have legitimate questions about the timing of the establishment of the company and its relationship to the charity,” said Leary.
Elliott said the company was set up for a potential new venture that never eventuated. After receiving Stuff’s questions he said, “I had overlooked closing this and have applied for removal of this company today”.