The Department of Internal Affairs has confirmed its charities services division is investigating the Kohanga Reo National Trust.
Charities Services, formerly the Charities Commission, is the DIA body responsible for the registration of charitable entities.
Kohanga Reo National Trust HQ in Wellington. Photo: RNZ / Diego Opatowski
The report of an Ernst & Young review released on Tuesday found no misuse of public funds by the trust.
The Ernst & Young review was commissioned by the Government following allegations of credit card misuse by the trust's commercial arm, Te Pataka Ohanga.
It concluded that tighter rules are needed regarding credit cards, payroll systems and koha payments but it did not cover the financial dealings of Te Pataka Ohanga as such.
Education Minister Hekia Parata said earlier on Wednesday Te Pataka Ohanga could not be investigated because it is privately funded.
The DIA won't comment on the exact nature of its investigation but Ms Parata says she understands it relates to Te Pataka Ohanga, and the trust itself is taking steps to discipline its commercial arm.
New Zealand First leader Winston Peters says it is nonsense to suggest the money is not public money.
Winston Peters - may be kingmaker Photo: RNZ / Diego Opatowski
Mr Peters says it's simply not good enough that the Ernst & Young review did not look into the financial dealings of the commercial arm because, the minister says, it's not publicly-funded.
"This is an extraordinary statement to be made by a minister who should know better. After all she's a minister of education and in every sense it's taxpayers' money but the Ernst & Young investigation was an investigation you're having when you're not having an investigation and the report goes nowhere."
Mr Peters says this will be of no comfort to the parents and whanau of children at kohanga reo, concerned about the original allegations.
The Kohanga Reo National Trust board plans to talk publicly about the Ernst & Young review but says it wants to discuss the findings with its supporters first.
Fox stresses commercial arm private
Derek Fox, who is managing media on behalf of the trust, believes kohanga whanau should be happy that the trust has been cleared.
He told Radio New Zealand's Nine to Noon programme it's important to remember Te Pataka Ohanga isn't overseen by the Government because it's a private entity.
"Don't forget this trust is not an arm of the government. It is a private trust."
Mr Fox says the trust is also working on internal matters relating to Te Pataka Ohanga.
The Mataatua Tauranga-Moana kohanga branch, which has in the past challenged management decisions by the trust, says it's pleased by news of the Charities Services' review, and is planning a hui to discuss how to move forward.
Also on Wednesday, Education Minister Hekia Parata referred what she described as unsubstantiated allegations of mis-spending by the commercial arm of the Kohanga Reo Trust Board to the Serious Fraud Office.
