The Raukura Waikato Social Services Trust has suffered another blow from government agencies following its suspension yesterday by the Ministry of Social Development.
The Ministry of Justice has also now suspended its contract with Raukura Waikato.
The trust lost contracts worth $1.17 million with the Ministry of Social Development for 60-days, after what it said were a number of unspecified issues surrounding the trust.
As well as providing services for Child, Youth and Family, Raukura Waikato is also contracted to the Ministry of Justice to provide non-violence programmes and work with offenders for the Corrections Department.
Raukura Waikato said because key staff who deliver the non-violence programmes have left the trust, it is unable to deliver what it was contracted to provide.
The ministry said it had ceased all new referrals, and will be contacting the trust to organise the transition of its five current clients back to the courts so they can be assigned another provider.
Corrections is still to make a final decision and said it is still working through the matter with the trust.
Corrections said it had alternative options for the work Raukura Waikato does and there is no ongoing financial risk to the department.