Naomi Long said she has "huge sympathy" for students who lost money after a business advised by an Alliance MLA went bust owing more than £64,000.
The Alliance leader expressed concern over young people being left out of pocket, but stressed her party was not involved in the company for which Patrick Brown was a paid consultant.
She said that "businesses go out of business sadly every day" and the matter was now "in the hands of a liquidator".
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South Down MLA Mr Brown earned £800 a month to advise Volunteer USA, a business trading under the name Politrip which organised trips for young people to take part in American election campaigns.
The company last year entered liquidation with trips cancelled and students left unsure whether they will ever get their money back.
Separately in November, Alliance launched an internal investigation after it emerged the business had sought to charge a graduate hundreds of pounds to campaign for the party during Stormont elections.
Mrs Long told Belfast Live the offer was made without the party's authorisation and would not have been approved.
She said party's internal probe found "no wrongdoing", but their representatives have been reminded to ensure there are "proper approvals in place before any offers are made".
"We did the investigation, we looked at the circumstances surrounding it, and it became apparent first of all, that no one took up that offer, so that's the first thing," she said.
"We have reminded all of our elected representatives and indeed all of our staff of the importance of having proper approvals in place before any offers are made.
"And I think it's important that we did that because there are rules that govern how we organise the party. I take those very seriously, and it's important that people are robust in how they apply them.
"That advice and guidance has been given to our elected representatives. But there was no wrongdoing found so there was no further investigation required."
Mr Brown set up Politrip Ltd in 2017 and operated the business for a number of years as its sole director. It was liquidated in 2021 and the brand was sold to a newly incorporated company called Volunteer USA, for which Mr Brown was a paid consultant.
Volunteer USA continued trading under the Politrip name, carrying on the political travel business until its liquidation last summer.
In an email to customers cancelling all scheduled trips, the business blamed the Covid-19 pandemic and "unforeseen last-minute operational costs".
Mr Brown, who was listed among the creditors awaiting payment, said last year it would be "inappropriate" to comment while insolvency proceedings were continuing.
Mrs Long said neither company is associated with the Alliance Party.
She said: "Clearly, I am concerned about students that would be left out of pocket as a result of any company going into liquidation. And I have huge sympathy with those young people who lost money as a result of what happened.
"Businesses go out of business sadly every day and there are people who will lose money as a result of that. It is particularly painful when it is young people who have invested that money and so my sympathies are with them.
"But it is in the hands of a liquidator, and that will have to go through due process.
"And it's not something that as Alliance we have any involvement with nor would we sanction any involvement with it."
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