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Inquiry launched into Oranga Tamariki over provider funding

Monday, 14 October 2024

Orange Tamariki Chief Executive Chappie Te Kani.
Orange Tamariki Chief Executive Chappie Te Kani.

The Auditor-General has launched an inquiry into Oranga Tamariki/Ministry of Children’s funding decisions for providers that roll out services to vulnerable children and youth.

“Concerns have been raised with our Office about the processes Oranga Tamariki has followed to manage its contracts with social service providers, particularly its decision-making process for the 2024/25 contracting round,” a statement on Parliament’s website stated.

Oranga Tamariki has come under the microscope after The Post first revealed in June the start of a saga of funding issues across the country, as the ministry overhauled its funding structure which saw many contracts reduced and payments withheld.

Contracts with the Children’s Ministry range from counselling, youth programmes, support for vulnerable families, sexual violence prevention, aspects of foster care funding and support for young people leaving care.

In September, despite reassurances from Oranga Tamariki that services for vulnerable clients would continue, many had not been moved from providers with discontinued contracts.

The Auditor-General’s statement said public organisations “should use evidence and analysis to inform their decisions about how to spend public money”.

“The services being delivered under the contracts in question support some of New Zealand’s most vulnerable tamariki and rangatahi, and their whānau. It is vital that these contracts are managed well from beginning to end.

“Because of the importance of these services, the concerns we have heard, and the amount of funding involved, we have decided to carry out an inquiry.”

The focus of it was on the decisions, action and process of Oranga Tamariki between July 1 last year, to June 30, 2024.

“However, we will also consider subsequent events to the extent they are relevant.”

Social Service Provider CE Belinda Himiona raised concerns with the Auditor-General in July.

“We’re not seeing a reduced demand for provider services that justifies the scale of the funding changes,” she said.

In August, Minister for Children Karen Chhour released a statement to “disgruntled providers”, saying she was “committed to putting the safety of children in Oranga Tamariki’s care ahead of the security of the businesses run by providers”.

“If the last Government had taken the same approach to contracting, at least $132 million more could have gone to children, rather than letting some providers build up their bank balances.

“If funding has been withdrawn from a provider, it’s because they are either under-delivering the services that children and young people need, or other providers are better placed to deliver those services, or it’s just not core business. It’s as simple as that.”

The ministry set up an email address on June 11 for providers to contact. Many told The Post they did not have adequate information over Oranga Tamariki’s decision-making and processes, and had emailed multiple times with no response.

According to an Official Information Act request, Oranga Tamariki received 1100 emails to that inbox over a two-month period, from when it was established. It replied 380 times.

Oranga Tamariki said it “was used for a variety of internal and external purposes” and “does not reflect the totality of communications with providers”.