Te Kāika Faces Scrutiny Amid Rapid Growth and Governance Issues

The health and social services organisation, Te Kāika, is under investigation by the Department of Internal Affairs following concerns about governance and financial practices. Founded in 2015, Te Kāika aimed to provide low-cost, wraparound primary care services for low-income families in Dunedin. However, its rapid financial growth has raised questions about its operational integrity.

In 2024, Te Kāika reported over $14 million in revenue, assets totalling $29 million, and a staff count of 148. Originally established as a GP practice in Caversham, the organisation has expanded significantly, operating a 2500 square metre “wellbeing hub” that houses various government health and welfare services. Te Kāika currently holds 41 contracts to deliver social services, catering to 8,859 patients across Dunedin, Oamaru, and Queenstown.

Despite its promise of accessible healthcare, concerns have emerged regarding staffing stability. Local residents, who spoke to the Otago Daily Times on condition of anonymity, expressed unease over frequent changes in personnel. One individual recounted how their GP advised them to seek care elsewhere due to an exodus of doctors from the practice. Social service leaders in Dunedin noted that Te Kāika’s staffing issues hindered collaborative efforts, creating challenges in providing consistent support.

Governance and Oversight Challenges

An investigation has highlighted governance problems within Te Kāika. The organisation’s governance board, consisting solely of Donna Matahaere-Atariki and Matapura Ellison, has failed to comply with its own constitutional requirements, which mandate a larger board. Concerns have been raised about the appointment of relatives to senior roles and a lack of transparency regarding financial dealings, including significant loans to leadership.

Charity governance expert Garth Nowland-Foreman commented on the implications of having a small board, stating, “Even in the smallest organisations, two people would be unlikely to have enough robustness and mix of skills to oversee the complex environment that charities operate in today.” The absence of adequate oversight may contribute to the issues currently facing Te Kāika.

A deeper look into financial practices reveals payments made to board members, which are currently under scrutiny. While OHL’s accounts previously stated that board members received no remuneration, recent reports indicate that $80,123 was paid to board members, alongside further payments in the following fiscal year. This raises questions about compliance with the charity’s governance rules.

Concerns About Service Delivery and Accountability

Te Kāika promotes its He Korowai Manaaki service as essential for transforming healthcare and enhancing the wellbeing of whānau. However, performance reports have shown significant gaps in accountability and service delivery. The Te Whatu Ora Health New Zealand (HNZ), a key financial partner, has expressed concerns regarding Te Kāika’s compliance with contractual obligations.

HNZ has funded Te Kāika nearly $1.8 million for services provided to clients with addiction issues. Despite the funding, reports indicate that Te Kāika has not met essential staffing requirements, and performance reporting has been inconsistent. The lack of clarity regarding funding usage and outcomes has prompted calls for improved reporting standards within the sector.

As the investigation continues, the community remains concerned about the implications for equitable healthcare access. Local leaders have voiced frustration over Te Kāika’s leadership and operational challenges, emphasising the need for a structure that supports reliable partnerships within the social sector.

In response to inquiries, Donna Matahaere-Atariki stated that Te Kāika is not isolated in facing recruitment challenges and claimed the organisation consistently receives positive feedback from its partners. However, she declined to address specific questions regarding governance, payments to board members, and service performance metrics.

The situation at Te Kāika serves as a critical reminder of the importance of governance, accountability, and transparency in organisations that play a vital role in community health and social services. As the investigation proceeds, stakeholders will be watching closely to see how Te Kāika navigates these challenges and whether it can fulfil its founding mission of serving the community effectively.