The employment agency that funded a $26,000 world hip-hop tour has left the Government a parting gift – $32,000 in bills for a cancelled farewell "bash".
Labour Department agency Community Employment Group was disbanded six months ago after "management weaknesses".
Its funding was split between the Social Development Ministry and Te Puni Kokiri.
As part of the handover, CEG was given approval to hold a conference with representatives from the two other agencies, Labour Department spokesman Richard Ninness said.
The conference was to be at the Millennium Hotel in Rotorua and delegates were to have their airfares and two nights' accommodation paid.
It is understood about 80 people were to attend.
In January, department officials discovered the conference had "grown in scope" and withdrew funding. But it was too late to recoup $32,000 of airfares, accommodation and venue hire already paid for.
AdvertisementAdvertisementMr Ninness confirmed that the conference appeared to have turned into a farewell party for CEG staff.
Department officials had acted quickly once they learned of the escalating cost of the conference, he said.
"We wanted to see money being used appropriately and to limit any unfair costs to the taxpayer."
The department negotiated to get back one night's worth of accommodation and arranged with the airline for some flights to be used at other times.
ACT Party leader Rodney Hide said the conference was never necessary.
It was classic use by Social Development and Employment Minister Steve Maharey of taxpayers' hard-earned dollars, he said.
"They had to abolish CEG under Maharey after it (funded) hip-hop tours," Mr Hide said.
"Now we discover their last act was to organise a flash bash."
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