The Government's much-needed Cost of Living Payment is going to migrants who haven't lived in New Zealand for years and shouldn't be eligible.
The criteria dictates that eligible candidates must be present in New Zealand, but the Inland Revenue Department (IRD) emailed thousands of people on Monday - many not Kiwis - all over the world saying they were getting a payment.
By 6pm Monday night, Parker had run back his "fraud" stance but the whole situation is a mess.
Former revenue minister Peter Dunne says the scheme is a good idea, but it has been executed poorly.
Speaking on Today FM's Tova, Dunne said mistakes have been made.
"If you have a policy that is essentially a cash handout you have to have some rules around that and clearly these rules were not in place," Dunne said.
"There were better ways of delivering the scheme.
"It could have been done as a top-up to Working for Families payments for instance.
"The broad brush approach has clearly failed."
Dunne said the rollout was rushed and has called the scheme a "debacle" which he said was no surprise under the current Labour Government.
Listen to the full interview between Peter Dunne and Tova above.