A year-long Otago Daily Times investigation revealed allegations of a dysfunctional workplace at Te Kāika, characterised by personal grievance payouts, as well as breaches of its own constitution.
Otakou Health Ltd (OHL), the charity behind the Caversham-based service, which has an annual revenue of $14 million, is under investigation by the Department of Internal Affairs over loans to its board chairwoman, Donna Matahaere-Atariki, and her chief executive son Matt Matahaere.
Health New Zealand Te Whatu Ora (HNZ) confirmed this week it would hold a "private meeting" with the OHL board.
No specifics of who was attending, when or where the sit-down would take place or what would be discussed were disclosed.
A spokeswoman for Te Kāika also refused to provide details.
"Te Kāika will not be providing any further comment to the ODT," she said.
In an email, provided by a source, Mr Matahaere wrote on Monday morning he was disappointed by the media coverage and thanked staff for their ongoing commitment.
He wrote he "strongly refutes" the suggestions that arose through the ODT investigation, although that line was removed when the email was largely replicated and posted on Te Kāika’s Facebook page a few hours later.
In OHL’s most recent audit, it was highlighted the charity made an unsecured, interest-free loan of $92,253 to board chairwoman Ms Matahaere-Atariki.
"The loan was made to allow her private home as partial security to the BNZ funding [of more than $10m for construction of the Caversham Wellbeing Hub]," it said.
The audit also noted a loan to Mr Matahaere of $5750 for "legal fees" and $2612 against his name in the debtors’ ledger.
Te Kāika earlier told the ODT the advances were approved by the board, short term in nature and repaid shortly after they occurred but in the Facebook post there was further explanation.
The larger payment to Mr Matahaere was an "accounting code error" through which he received no benefit, it said.
The social media post also provided context to the payment to Ms Matahaere-Atariki, which was vital to the completion of Te Kāika’s Wellbeing Hub.
"Ms Matahaere-Atariki accepted personal financial risk for two years to ensure the project could proceed," it said.
"All legal processes were followed, and without this commitment, the College St development would not have been completed."
Charities Services director Charlotte Stanley said its key focus was "protecting the integrity of the charities register and improving compliance with the Charities Act".
OHL had filed a response to the Department of Internal Affairs inquiries, which was now being assessed, she said.
No rough timeframe regarding completion of the investigation could be provided.
The audit, which sparked the DIA probe, disappeared from the Charities Services website, which the department said was due to an "administrative error".
It has since been reinstated.
OHL’s latest annual returns are due next week.
