Summarised by Centrist
A new report by Auditor-General John Ryan has criticised Oranga Tamariki’s management of its $537 million contracting round for social services in 2024–25.
Ryan says decisions lacked evidence, clear rationale, and consideration of how changes would affect children and families.
The report found Oranga Tamariki made late decisions with little documentation, gave providers inadequate notice, some receiving just hours before contract expiry, and failed to communicate the reasons for major funding changes.
“The effects of decisions on children and their families are still not known. Given that this is the core role of Oranga Tamariki, it is unacceptable for it to be in this situation,” Ryan wrote.
Ryan said Oranga Tamariki placed pressure on providers through threats of termination and delayed payments, with some services discontinued while still receiving referrals.
Staff cited an internal restructuring and poor coordination between national and regional teams as complicating factors.
The agency has accepted the findings and says it is working on improvements.
Children’s Minister Karen Chhour acknowledged “poor” processes but said a full review was necessary to shift funding from outdated or overlapping contracts to frontline services focused on vulnerable youth. “Good contracting… is about thoughtfully and intentionally funding the right services where they are most needed,” she said.
Labour said the agency was unprepared to carry out the reforms and that cuts may harm prevention efforts. The Greens called the changes avoidable and said they plan to reverse them in their alternative budget.
The Auditor-General made four recommendations, including better planning, clearer strategy, and ensuring decisions are based on their likely effect on children.
