The Minister of Pacific Island Affairs ignored warnings that there were great risks in awarding four point eight million dollars to a two year old company without a proper tender process.
Radio New Zealand has obtained advice from the Ministry of Pacific Island Affairs to its minister about the Pacific Economic Development Agency's proposal.
The agency was last month allocated money to improve the economic wellbeing of Pacific people in Auckland over the next four years.
However, the advice to the Minister says the agency is untested and unproven with a significant risk of failure.
The agency's six-page proposal to the Finance Minister contains only a few paragraphs about each of five projects, and no detailed budget.