Te Kāika — the trading name for charity Ōtākou Health Ltd (OHL) — is under ongoing investigation by the Department of Internal Affairs and also came under scrutiny in an investigation published by the Otago Daily Times last December.
Health New Zealand Te Whatu Ora (HNZ) is now also looking into the charity.
HNZ head of government services Sasha Wood said an HNZ internal audit is investigating OHL’s "contract management, performance management, and potential or perceived conflicts of interest".
HNZ declined an Official Information Act request from the ODT, asking it to provide recent OHL performance reports about services the charity delivers that are funded by the public purse.
Ms Wood said the reports were "relevant" to the audit and "further release of the reported information may prejudice this process".
Older reports were released last year to the ODT with reporting gaps.
The ODT has also flagged governance-level concerns, including loans to OHL bosses and repeated late filing of mandatory annual reports to charity watchdog Charities Services.
Both governance concerns are being investigated by the DIA.
Out of these, seven contracts worth nearly $2.53m ended last year and a further seven, worth $4.15m, expire this June. Four, worth $2.99m, expire next year.
It is unknown whether OHL will be awarded more HNZ contracts this year.
The biggest HNZ contract given to OHL is for people with alcohol and drug addictions. Worth $3.3m, it is funded until June next year.
Meeting minutes obtained by the ODT show government health officials met twice with the OHL governance board in December.
The first meeting, on December 11, was four working days after the ODT investigation into Te Kāika was published.
HNZ chief medical officer for the Southern district and Te Waipounamu region Dr David Gow attended with HNZ group manager integration, planning funding and outcomes Aroha Metcalf and Hauora Māori Services’ group planning and funding manager Aimee Kaio.
The minutes from the meeting said its purpose was "to understand OHL’s approach and steps to mitigate any staff, community, or partner concerns, and to maintain continuity of services following the recent adverse media articles".
In addition to the HNZ audit, the meeting agreed that OHL would arrange an investigation of itself.
The OHL board — comprising Donna Matahaere-Atariki, Matapura Ellison and James Hennessy — would "engage an independent expert to review the governance, organisational structure and operations of Te Kāika and provide recommendations".
The internal review would hopefully start in early 2026 and be completed "shortly after".
The board members would also undertake "self-reflection" on their "board performance".
There was recognition in the meeting that there was a "negative reputational impact" for Te Kāika from the ODT coverage and there would be efforts by the board to "mitigate" concerns, including
seeking legal advice, engaging communications professionals and board members being "on site" at the Te Kāika hub.
The tiny board, which for several years and until 2024 comprised only two members in contravention of the charity’s own rulebook, is chaired by Ms Matahaere-Atariki, mother of the charity’s chief executive Matt Matahaere.
Mention was also made in the December meeting about the board "engaging" accounting firm BDO to progress the charity’s 2024-25 annual report.
It was due to be delivered to Charities Services by an extended deadline of February 28, but missed that date and DIA said no further extension would be offered.
In minutes from a second meeting — held online on December 22, and attended by Ms Metcalf, Ms Kaio, Ms Matahaere-Atariki and Mr Hennessy — stated OHL was "disappointed" about further articles in the ODT.
There were "some changes to service delivery in train" including in the Oamaru GP service, and a new GP in Dunedin, but other services were continuing "without concerns" and the board was "confident in the way forward".
A Dunedin charity expert, who wished to remain anonymous, said that if the HNZ audit was extraordinary it was "not surprising".
Organisations that fail to comply in one area of obligations may be "more often than not failing to comply in others."
BDO was asked if it was OHL’s auditor and replied it could "not comment on client matters".
