Mistakes and lack of clear guidance led to millions being misspent, pokie trust says
New Zealand's Department of Internal Affairs has identified that up to $28 million in community grant funds were misspent by pokie trusts over the last decade. While some trusts blame a lack of regulatory guidance, officials suggest many prioritized their own growth over compliance.
Why it matters
The misuse of funds intended for community grants highlights significant oversight failures in the gambling industry and raises questions about regulatory accountability.
A pokie trust believes mistakes and a lack of clear guidance from regulators led to millions of dollars being misspent.
The Department of Internal Affairs (DIA) has found up to $28 million that should have been available for community grants has been used to cover other expenses instead.
Pub Charity chief executive Martin Cheer said some trusts may have misunderstood the rules, but ignorance of the law was no excuse.
"There's an element of hand in glove really; the industry is regulated and we need guidance from the regulator.
"But also these are sovereign entities with governance structures and management. They should have done better."
Cheer said the trusts were working to rectify the situation, with $11.5 million recovered so far.
Gaming Machine Association chair Peter Dengate Thrush told RNZ that while mistakes were made in the accounts, it looked worse than it was because of the review's timeframe.
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