Mike King. Photo: RNZ / Samuel Rillstone
A year after criticising the government's rushed procurement process for the Gumboot Friday mental health initiative, the Auditor-General now says the contract is being managed properly and in line with good practice.
The public spending watchdog on Friday released its response to Labour MP Ingrid Leary, who last month asked it to investigate whether the Ministry of Health's deal with the I Am Hope charity was delivering value for money.
The Auditor-General said its recent audit work had concluded that the ministry's handling of the contract was sound.
"Overall, the review found that the contract was being managed appropriately against its terms and in accordance with good practice."
Under the arrangement, those aged 25 and under can book free counselling services through the Gumboot Friday platform run by I Am Hope, founded by comedian Mike King.
The audit found the ministry had developed a contract management plan, was receiving regular reports on counsellor numbers and sessions delivered, and had clearly defined payment milestones.
No complaints about the service had been lodged with the ministry to date.
Both the mental health minister and director-general of health also received a full review of the scheme's performance before deciding to renew the contract in July.
As a result, the watchdog said it would not launch a further investigation unless new information came to light. It had, however, advised the ministry to consider using an independent probity auditor for any future major procurement.
The Auditor-General's office also noted that it could not examine the internal practices - such as remuneration - of I Am Hope itself, because the charity was a private organisation.
Ingrid Leary. Photo: VNP/Louis Collins
Leary was advised she could raise any further questions with the ministry at its annual review during Parliament's Scrutiny Week in the first week of December.
In October 2024, the Auditor-General issued a highly critical report on the way the government awarded $24 million to I Am Hope over four years, describing the procurement process as "unusual and inconsistent with good practice".
The Ministry of Health had invoked an special opt-out provision to bypass a competitive process, given the National-NZ First coalition agreement had already committed the funding.
But the Auditor-General found no clear justification for invoking the clause, and said the analysis appeared aimed at retrospectively justifying a decision that had already been made.
It warned the approach created risks for transparency, accountability, and value for money, and said it intended to closely monitor the initiative.
At the time, officials accepted the process had been carried out at pace and lacked adequate documentation, risk analysis and proper timing.
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