A school bus operator says an Auditor-General's report clearing the Ministry of Education of wrongdoing in its school bus tendering process failed to deal with the major issues.
Almost half the tenders in 2008 were awarded to four bus companies, which were allocated hundreds of runs, leaving the majority of operators with six runs or fewer.
The process led to complaints that new rules adopted by the ministry favoured bigger companies.
The Auditor-General began an inquiry in February, and found there were inconsistencies in the way the ministry dealt with various applicants and factual errors relating to particular applicants.
However, the Auditor-General's report concluded the errors and inconsistencies did not undermine the overall process and the ministry's ministry's procurement methods were sound.
Bethlehem bus operator Neil Jamieson, who lost about half his runs as a result of the tender, says the report is a whitewash that fails to address the key issues.
Companies tendered with a letter of intent to buy a vehicle, he says, and are now operating services without those new buses.
Labour's spokesperson for rural affairs, Damien O'Connor, says the test now will be whether the large operators can maintain services in small remote areas, within the budget they tendered.
The Ministry of Education says it will address the report's recommendations for better quality assurance and more information for potential suppliers in future.
