The report found MSD didn't monitor the quality of accommodation and couldn't show it was receiving value for money, that is, if the rentals were worth the money paid for them or how warm, safe and dry they were.
Social Development Minister Carmel Sepuloni says her agency needs to take a rebuke on the chin.
She says the findings are fair and reasonable and she's glad MSD stopped the practice.
National's housing spokesperson Nicola Willis says the report shows a shocking waste of taxpayer money.
She says it shows there was really sloppy management of how emergency was being procured and proves there was not value for money and likely distorted the rental market.
Nicola Willis joined Kerre McIvor.
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