Queensland Youth Rehab Provider Referred to Authorities Over Alleged Fund Misuse

A Queensland provider for a youth offender rehabilitation program, funded by the state government, has been referred to authorities over alleged public funds being misappropriated.

Namu Collective was awarded a contract for the LNP government's "staying on track" program to stop youth offenders from falling back into the cycle of crime.

Youth Justice Minister Laura Gerber told state parliament the youth justice department had referred the company to several authorities and had terminated its contract for the program today.

"The department has today referred Namu Collective to the Crime and Corruption Commission (CCC), Queensland Police Service, ASIC and the ATO on the basis that public funds have been misappropriated," she told the house.

"The department has an obligation to ensure public funds are used appropriately."

Namu Collective was announced as one of the program's providers last October.

Under the program, the company would offer up to 12 months of intensive rehabilitation for youths once they leave detention, including at least six months of intensive support to reintegrate them into the community in the state's north and far north.

It was part of the state government's $225 million investment in intensive rehabilitation to help restore safety.

In a media release at the time of the announcement, the company said the program was an opportunity to create a different pathway for youth involved in the youth justice system.

"Staying on Track is a twelve-month program, and we plan to use those twelve months to build a future for the young people," the company said.

On Friday, Ms Gerber said 36 youths who had been engaged with the collective had been referred to other staying on track providers to continue receiving support and rehabilitation.

"I will keep the House informed on this matter," she said.

Shadow Youth Justice Minister Di Farmer has asked for a greater explanation of the alleged incident and the procurement processes for the program.

"This minister needs to step up. She needs to explain what she is doing," she said.

Queensland police confirmed the matter had been referred to the service by the Department of Youth Justice.

"As this matter is now subject to ongoing investigations, it is not appropriate to comment further," the police said in a statement to the ABC.

A CCC spokesperson said it does not confirm or comment on any complaint or investigation, referrals to other agencies or matters before the court.

The ATO said it was unable to comment due to obligations under taxpayer confidentiality laws.

Namu Collective and ASIC have been contacted for comment.