Ihumatao purchase requires validation by Parliament

WELLINGTON: The auditorgeneral has found the Government’s $30 million purchase of land at Ihumatao was unlawful because it did not seek the correct approvals from Parliament.

In December the Government announced the land would be bought from Fletcher Building for $29.9 million and held by the Crown under the Government’s housing programme.

While some of the land would be devoted to housing, the programme also allowed for it to be passed into the ownership of tangata whenua once talks about its future were held.

The deal was designed to be outside the Treaty of Waitangi claims process, and bring to a head the longrunning dispute over the land at Mangere, in south Auckland, originally confiscated from mana whenua in 1863.

However, soon after the deal was announced, Act New Zealand leader David Seymour and National MP Nicola Willis wrote separately to the Office of the Auditorgeneral asking it investigate the purchase.

They were concerned using that amount was outside the appropriation for that programme and therefore potentially unlawful.

They also wanted to reassure the public that significant sums of taxpayer money were being managed appropriately.

In responses to the opposition MPs published yesterday, auditorgeneral John Ryan said while their concerns about a misuse of funds did not eventuate, there were two ‘‘important omissions’’ from the approval for the expenditure.

The Treasury had previously advised the Government the Ihumatao transaction did not fit within the existing Land for Housing Programme’s intent.

There was also a risk the expenditure would not fit within the appropriation scope of the KiwiBuild Housing appropriation.

The land purchase transaction was settled on February 17 this year.

Mr Ryan said the ministry failed to request the necessary approvals.

‘‘As a result, the payment of $29.9 million used to purchase the land was incurred without the proper authority.

‘‘Because the ministry did not seek the correct approvals, the expenditure was incurred without appropriation and without authority to use imprest supply.

‘‘For these reasons, the payment is unlawful until validated by Parliament as part of an Appropriation (Confirmation and Validation) Act.’’

Standard procedures for the unappropriated expenditure would follow, Mr Ryan said.

This included requiring Housing Minister Dr Megan Woods to explain the matter to Parliament, and seeking the correct validations.

Prime Minister Jacinda Ardern insisted yesterday the deal was not a botchup by the Government.

She said the land would be used for housing but there was a ‘‘large process to go through’’.

Ms Willis said the report showed the deal was ‘‘not done by the book’’.

Dr Woods downplayed concerns raised in the report, saying claims the Government misused housing appropriations were ‘‘found to be without foundation and were explicitly rejected’’.

‘‘While it is not an ideal situation this was a technical error and there are standard processes for correcting it,’’ Dr Woods said. — The New Zealand Herald