The Lion Foundation today rejected Department of Internal Affairs' claims of involvement in any "scheme" associated with the funding of four Northern Harness Racing Clubs.
Foundation chief executive Phil Holden said the foundation "reiterates its commitment to New Zealand communities".
Yesterday the department announced it was trying to ban three gaming machine societies and seven pokie bars from funding four harness racing clubs, following an investigation into millions of dollars worth of funding.
Department gambling compliance director Mike Hill said a proposed new gambling licence condition would prevent the Lion, Perry and Infinity foundations from granting pokie funds to the Thames Harness Racing Club and the Manukau, Kumeu and Franklin Trotting Clubs.
The four clubs got more than $5.4 million between 2006 and 2008 and about $400,000 before that.
Earlier this year it was alleged that a complicated pub-buying venture had been set up to pump millions of dollars of pokie machine money into harness racing.
Mr Holden said in a statement today the support of racing through grants was a legitimate authorised purpose, specifically mentioned in the Gambling Act 2003 and within the current guidelines and regulations of the department.
"The Lion Foundation is audited by the department regularly and the department has never questioned any grant made by the Lion Foundation to the racing industry in general - or the four Northern Harness Racing Clubs.
"The Lion Foundation complies with and will continue to comply with all industry regulations and the Gambling Act 2003."
Mr Holden added the foundation operated a highly structured and transparent application and grants approval process with its trustees overseeing all decisions about grant allocations, "ensuring at all times the integrity and robustness of the grants process".
