The Prime Minister has slammed the Ministry for Pacific Peoples' $40,000 farewell party for its former chief executive which has drawn the ire of the Public Service Commission.
"It isn't consistent with the Government's expectations and that has been made very clear to the Ministry for Pacific Peoples," Chris Hipkins said on Thursday.
"It is ultimately a matter for the Public Services Commissioner to pursue but it isn't consistent with what my expectations or the Government's expectations are."
The Public Service Commission on Wednesday revealed the Ministry for Pacific Peoples spent $39,262 on a farewell event last October for Leauanae Laulu Mac Leauanae as he left his role as chief executive there to become the head of the Ministry of Culture and Heritage.
A review by the commission found that expenditure - which included thousands on photography, flowers, ceremonial drummers and gifts - wasn't appropriate. There was "no evidence of an agreed budget" and "limited monitoring or oversight of expenditure", it was found.
Leauanae wasn't involved in the planning or decision-making for the event, but the commission said that as chief executive he was responsible for overall expenditure.
After being made aware of the money spent, Leauanae paid back the $7500 spent on gifts and returned the items.
Hipkins was the Public Services Minister at the time of the farewell event.
He denied he had overseen a culture of extravagance in the public service.
"I haven't seen other examples of this but I don't think it's acceptable," the Prime Minister said.
The spending appears to have come to the Public Service Commission's attention after the ministry sent it a response to an Official Information Request about the costs.
Asked if there was enough oversight of agency spending, Hipkins said: "I can tell you as a former opposition Member of Parliament that this is something Select Committees routinely look at as part of their annual reviews".
"Where this sort of thing happens, it would be uncovered as part of the regular course of reviewing Government expenditure. It isn't acceptable."
He said it was a matter for the commission on whether anyone should lose their job for the spending.
The review also found spending by the Ministry for Pacific Peoples on a welcome event for Leauanae at the Ministry of Culture and Heritage also wasn't up to standard.
In a statement to Newshub on Wednesday, Pacific Peoples Minister Barbara Edmonds, who took on the portfolio earlier this year, said it was "disappointing this has happened".
"Like all Ministers, I expect agencies to spend taxpayer dollars prudently. They were not met on this occasion," she said.
"Since becoming the Minister for Pacific Peoples, I have made my expectations around financial controls and practices clear.
"Senior Leadership at the Ministry has since changed and I have confidence in the new Chief Executive to ensure this doesn’t happen again.
The new Secretary for Pacific Peoples Gerardine Clifford-Lidstone said she accepted the expenditure on the farewell didn't comply with internal policies and other guidelines.
"This must be remedied with urgency. I have reviewed MPP's policies and guidance on sensitive expenditure to ensure they are robust and reflect the Public Service Commission's standards and guidance, as well as the Office of the Auditor-General's guidance on sensitive expenditure.
"Important decisions about sensitive expenditure are now scrutinised and documented, and clear budgets set before any spending decisions are made.
"This will ensure that something like this does not happen again. MPP's financial controls, practices and conventions now better reflect the prudent use of public money."
ACT Party leader David Seymour said the ministry would be gone if it was in power.
"Pacific communities in New Zealand have thriving cultures, and are more than capable of sustaining their cultures and languages without a dedicated Government Ministry.
"The Ministry is unable to point to any achievements other than successfully spending its $30.6 million budget. Under ACT, the Ministry for Pacific Peoples would be gone."
