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Government spending - Source: ONE News -
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Almost half of New Zealand's Industry Training Organisations have been ordered to pay back millions in government funds they have been wrongly claiming.
Tertiary Education Commission acting chief executive Colin Webb said the TEC was in the process of recovering up to $4.3 million from 18 of the 38 ITOs.
The recall follows a review of all ITOs which found many did not have robust enough monitoring and reporting processes in place and that some claimed funding they were not eligible for, including funding for trainees who were not studying.
In the worst case, the organisations claimed funding for trainees who had died. And it was not just one case as ONE News has been told eight organisations claimed funding for deceased students.
The list includes trainers responsible for trades and professions ranging from social services to seafood, from plumbing to flooring.
"Where the TEC finds evidence of non-compliance, we will continue to recover funding," Webb said.
In some cases the wrongful claims date back two years.
The TEC will introduce new funding rules for 2011 and will undertake in-depth audits of ITOs.
It will also recover some 2010 funding from ITOs where there was a reduction in demand for training. Less money will be invested in 2011 because of the reduced demand.
"The TEC will continue to monitor trainee numbers and performance to ensure funding continues at an appropriate level," Webb said.
One organisation which trains brick layers, painters, and signwriters has already closed after ongoing performance and financial issues and there are claims other could follow.
Tertiary Education Minister Steven Joyce said the monitoring of ITOs had been inadequate and the recovery of money ensured value for taxpayers money.
He said recovered funds would be redistributed to other parts of the tertiary sector.
"If organisations are receiving money from the taxpayer then they must meet the requirements of that funding and deliver results."
ITOs must ensure they are spending taxpayers money for the purposes it was provided and the TEC must monitor that, he said.
"New monitoring systems together with changes in funding rules implemented late last year will ensure that money spent on future industry training delivers meaningful results for taxpayers, trainees and the economy," Joyce said.
"While the recession has impacted on the number of trainees in work who are seeking industry training, we still expect ITOs to arrange good quality training.
"I expect ITOs to ensure they are spending taxpayer's money for the purposes it was provided, and I expect the TEC to ensure that is being effectively monitored."
The ITOs have until next financial year to pay their debt.
Funds are being recovered from the following eighteen
ITOs:
Social Services ITO
Skills Active
Seafood ITO
Retail Meat
Competenz
Equine ITO
Local Government ITO
Tranzqual
Apparel ITO
FITEC
BCITO
ESITO
Plastics ITO
Motor ITO
Plumbing ITO
Joinery ITO
Hairdressing ITO
Flooring ITO
- with Fairfax
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