Answers needed over Bennett's $2.4 million no-tender contract

Social Development Minister Paula Bennett has questions to answer over her Government’s decision to favour a private company with a multi-million contract, Labour’s Social Policy spokesperson Annette King said today.

“It has been revealed that Parents Inc, a privately-owned company, was awarded $2.4 million in taxpayers’ money from Vote Social Development in last week’s Budget without the contract being put up for tender to other organisations in the field,” Annette King said.

“The whole process has been very murky indeed.

“The chief executive of Parents Inc, Bruce Pilbrow, was the Deputy Commissioner of the Families Commission until Mr Pilbrow resigned just two days before the Budget.

Mr Pilbrow was Paula Bennett’s handpicked choice for commissioner last year.

“The whole saga raises serious questions for Miss Bennett about a possible conflict of interest and who knew what and when.

“Questions Miss Bennett need to answer include:

• Why was the contract not put out to tender – when that could have saved taxpayers’ money?
• When was Mr Pilbrow told his company had been given the contract?
• Why was Parents Inc not named as the recipient of the $2.4 million contract in Budget documents?
• When Mr Pilbrow says he deliberately cultivated relationships with ministers, what was the purpose -- were business arrangements discussed?
• What research is available to show that Parents Inc has the most effective programmes?
• Are there no other organisations in New Zealand that can offer similar programmes that should have been invited to tender?

“No-one is saying that the programme and company do not provide a valuable service.

“But it is not on for Ms Bennett to favour one company and try to keep other organisations out of the process.

“The complete lack of transparency leaves questions about a potential conflict of interest.

“Paula Bennett worked alongside Mr Pilbrow for many months.

“She also knew Mr Pilbrow was resigning his role as commissioner just before the Budget but chose not to draw attention to it with a media statement acknowledging his work on the day he resigned, as is normal practice.

“Taxpayers deserve much better scrutiny over how their money is spent.

“Paula Bennett has got some explaining to do,” Annette King said.