Daycare centre accused of ripping off parents

Daycare centre accused of ripping off parents

Charges have been filed against an Auckland daycare centre accused of lying to parents about how much funding it was getting from the Government.

Kowhai Montessori Pre-School Limited and its former director and manager Rebecca Brindle face 14 charges under the Fair Trading Act relating to five invoices and two letters sent to parents between October 2013 and October 2014.

According to the Commerce Commission, Orakei-based Kowhai began telling parents it got $4.70 an hour from the Government for kids aged between three and five, under the 20 hours free ECE scheme. Parents were asked to make up the $7 difference between that and its $11.70 hourly rate.

In May 2014 Kowhai allegedly upped its prices to $13.70 an hour, and began asking parents for $9.

But the commission says Kowhai was getting $11.33 an hour, and additional funding under the Plus 10 hours ECE scheme.

In September 2014, Kowhai said it was cutting the parents' contribution to $8 because the Government had increased its funding to $5.70 - but the commission says the subsidy at that time was $11.43.

Both Brindle and Kowhai have pleaded not guilty, and will reappear in court in September.

Kowhai has since been sold, and is operating under new management.

Newshub.