Does granting shares to someone above and beyond the grant money qualify under that rule? It doesn’t sound like it to me.

But I’d be interested in further comment on whether this is the case as it may prevent the same thing happening to another company in the future.

NZTE strikes the right balance on funding processes

New Zealand Trade and Enterprise is responsible for administering more than $70 million worth of business grant funding each year.

Coming as it does from taxpayers’ pockets, it is vital that we have clear guidelines on how the money can be used.

We say quite clearly that any service provider a company employs with its grant funding “must be independent and not financially or personally associated” with the company. If we didn’t, it would be possible for companies to use the money to pay their own staff – something taxpayers wouldn’t be that happy about.

Yes, we have “played firm with the rules” but these rules were clearly stated in the contract with this company. It didn’t follow them and, as a government agency, we could not be expected to be any less firm.

We strive to strike the right balance between processes that are prudent and administratively sensible and delivering a service that helps companies grow.

This month’s audit of the administration of our grant programmes by the Auditor General shows that we are effectively and efficiently administering these programmes in keeping with the intentions of government.