The Maori Internet Society says choosing Te Mangai Paho to distribute the Government's $30 million ICT fund will ensure the process is transparent.
The money was allocated in this year's Budget to establish support of Maori economic development, language and culture through ICT.
Maori Affairs Minister Pita Sharples said Te Mangai Paho had an excellent record in administering Government money for Maori affairs and is ideally suited to running the fund.
Dr Sharples said Te Mangai Paho would undertake a public consultation process with tangata whenua, and other stakeholders on possible uses for the fund.
He said the fund would benefit Maori both commercially and culturally and he believed there would be big gains for Maori in business.
Dr Sharples added that it was very important that key areas of Maoridom were up-to-speed and had the skills to develop, and that Maori were already using new technology to revitalise Te Reo and tikanga .
He said Te Mangai Paho would establish a Maori ICT expert group to provide ongoing advice.
The Maori Internet Society's spokesperson, Karaitiana Taiuru, said Te Mangai Paho already had the infrastructure and experience as a funding agency, which would make sure the allocation would be a transparent process.
He said if the putea was allocated to a Maori ICT group, there would be issues of accountability.
Mr Taiuru said although the agency did not have the expertise at the moment, there were a number of tangata whenua leaders in the ICT sector that could be recruited for the expert group.