Tonga says NZ has asked for aid money back

Published: 7:10PM Wednesday January 18, 2012 Source: ONE News

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Tonga claims it has been asked to return a large amount of New Zealand aid money after an independent auditor was unable to track it down.

Around $300,000 dollars of aid money was reported missing in November.

A month later the New Zealand Government announced an independent auditor had found no evidence of fraud, and the missing aid money was due to poor book-keeping

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But according to Tonga's auditor general, the independent auditor did not have access to all the information he needed because of a lack of receipts.

"Our audit was limited to the scope agreed within our contract for services and therefore our review cannot be relied upon to detect every instance of fraud," auditor general Dr Pohiva Tu'i'onetoa's final report said.

The independent report tracked down half of the missing money - which was spent by Tonga's former Government on preparing the country for elections.

Tu'i'onetoa claims New Zealand has told Tonga to pay back the other half.

"Your minister [Foreign Minister Murray McCully] has two faces - he has to face the New Zealand public but he also has to face Tonga," he said

In a statement McCully says some Tongan internal politics are at play and the money that is being returned to New Zealand is just unspent funding from the aid project.

While the debate continues over the missing money, cash-strapped Tonga argues it needs all the aid it can get.

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