26 May 2009

NZAid drops funding for Piango after audit concerns

1:20 pm on 26 May 2009

New Zealand's aid organisation NZAid has ended its funding for the Pacific Islands Association of NGOs, or Piango, for the next two years.

NZAid had agreed to core funding of just over 700,000 US dollars a year for a three-year commitment, for the regional network, which is working for 21 Pacific countries.

NZAid's Mark Ramsden says after concerns over Piango's financial management, NZAID aid commissioned an independent audit review, which confirmed significant concerns.

"At this point we are working with them to recover some funds that the audit report identified have been misspent. There are, I think it's fair to say, some significant changes that PIANGO would need to make to be able to be considered for funding support by any donor in the future. But I think the ball's really in PIANGO's court."

Mark Ramsden says it is up to the stakeholders of PIANGO, including its national liaison units, to decide how Piango's functions are taken forward.