Government seeks advice on recovering $2.75m Moana Pasifika loan

Sport and Recreation minister Mark Mitchell says the government is seeking advice on how to recover millions of dollars still owed from a taxpayer backed loan to Moana Pasifika.

The Super Rugby franchise was placed in liquidation on Monday, leaving the government among the creditors attempting to recoup outstanding funds.

The first liquidator's report is expected early next week, but Mitchell confirmed the franchise's debts include a $2.75 million loan from Sport NZ - a Crown entity.

"Obviously, they're in liquidation. So they're going through a process now. We are on the list of creditors," said Mitchell.

"At the moment what I'm focused on is we've got $2.75 million of taxpayers' money that is in the creditors' line."

Mitchell said he had asked Sport NZ to put together some advice on whether the money can be recovered from Moana Pasifika, acknowledging there is a possibility it may not be.

"Naturally it's a concern because it's taxpayers' money, but I'm sure that it was invested in good faith.

"It's sad that Moana Pasifika finds itself in the position that it is in now but I'm interested in making sure that we're being good custodians of taxpayers' money."

Mitchell said he was not aware of any plans to rescue the Moana Pasifika, despite coalition partner Winston Peters on Tuesday teasing "good news" was on the way for the franchise.

When pressed, Peters declined to provide any further details.

"You will have to wait," he said.

There appear to be two frontrunners who could save the franchise.

RNZ understands one is a private consortium, Kanaloa Rugby, which has the backing of former All Blacks Ben Atiga and Jerome Kaino.

The other option to rescue Moana appears to be the possibility of government assistance or aid budget money out of New Zealand, Australia and Samoa.

Mitchell told reporters he was not aware of what Peters was referring to, and had not followed up with the NZ First leader.

"I haven't sat down and spoken with Winston about Moana Pasifika or any plans that he might have. I'm sure in the coming days we will."

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