A Royal commission was held and Ngata was found guilty of maladministration and misappropriation of funds.500,000 pounds had been transferred from government funds to Maori. Ngata resigned in disgrace.
In 1932 Ngata and his Department of Native Affairs came under increasing criticism from other politicians. An inquiry into Ngata's department was held, and it was discovered that one of Ngata's subordinates had falsified accounts. Ngata himself was severely criticised for disregarding official regulations which he had often felt were inhibiting progress. It was also alleged that Ngata had shown favouritism to Ngāti Porou and Waikato, especially Te Puea and her husband. Robert Semple, the labour leader, said the investigation (by the royal commission) showed one of the worst specimens of abuse of political power, maladministration, misappropriation of public funds as well as a betrayal of trust. Ngata, while denying any personal wrongdoing, accepted responsibility for the actions of his department and was dismissed from his ministerial position. Māori leaders, such as Te Puea, were angry at Ngata for discrediting and embarrassing Maori.
http://en.wikipedia.org/wiki/Apirana_Ngata
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