Problem gambling group contests loss of contract

New Zealand’s Problem Gambling Foundation is in court challenging its loss of a government contract to provide services to people with gambling addictions. The Ministry of Health awarded the contract to the Salvation Army after a tender process, which the PGF says was flawed. The contract provided 70 percent of the PGF’s funding, which is now in danger of collapse. 
Claims that there was a political aspect to the decision because the PGF had opposed casino operator SkyCity’s “convention centre for pokies deal” were denied by counsel for the Attorney General in the final day of the court hearing. SkyCity is building a convention centre in return for an extension to its licence, being allowed 230 more pokie machines and other concessions. Counsel, Matthew Andrews, said the PGF made one of 32 tenders received and it lost the contract because its proposal was inadequate. PGF’s contract has been extended to February 2015 pending the judge’s decision.