Labour says it is highly irregular that a private company was given money in the Budget with no tender process.
The Pacific Economic Development Agency has been allocated almost $5 million over four years to develop workplace and business skills for Pacific Islanders.
Labour questions why other organisations were not invited to bid for the programme.
Pacific Affairs Minister Georgina te Heuheu says the Government believes engaging a private company will help it to achieve its economic objectives.
She says the agency presented a persuasive case for funding.
But Labour MP Sua William Sio says it's been a questionable process.