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Audit Findings on Te Wānanga o Aotearoa

Mar 21, 2025

Inquiry into Certain Aspects of Te Wānanga o Aotearoa

Overview

  • Conducted by: Controller and Auditor-General under Public Audit Act 2001
  • Concerns: Ethical practices, financial management, conflicts of interest
  • Entity: Te Wānanga o Aotearoa (TWOA), a Crown entity and public tertiary education institution
  • Focus: Decision-making, conflicts of interest, management of senior expenses, relationship with Aotearoa Institute Te Kuratini o Ngā Waka Trust (AI Trust)

Key Findings

Governance and Management Issues

  • Poor Documentation: Incomplete records and lack of formal decision-making processes
  • Conflicts of Interest: Significant, poorly managed conflicts, especially with Rongo Wetere's involvement
  • Rapid Growth: TWOA's rapid expansion without adequate governance and management systems

Financial Management

  • Expenditure Practices: Informal decision-making leading to financial vulnerabilities
  • Dependency on AI Trust: Unclear transactions and potential risks if the relationship ends
  • Senior Management Expenses: Issues with international travel, credit card use, and lack of compliance with policies

Relationship with AI Trust

  • Close and Longstanding: Entangled financial and operational transactions
  • Lease Arrangements: Many significant property leases, creating potential dependency and risk

Specific Issues Addressed

Conflicts of Interest

  • Rongo Wetere's Influence: Conflicts involving family, especially in employment and contracting decisions
  • Appointments: Employment practices involving relatives often lacked transparency and fair processes

Property and Asset Management

  • Informal Practices: Poorly documented acquisitions and decisions, leading to financial overcommits (e.g., Glenview hotel complex)
  • Leasing vs. Buying: Lack of strategic review on whether to lease or own properties

Educational Programs

  • Course Ventures: Joint ventures like Mahi Ora and Kiwi Ora involved conflicts of interest
  • Intellectual Property Claims: AI Trust's potential claim against TWOA for course materials

International Travel

  • Poor Oversight: Inadequate documentation and approval processes for travel expenses
  • Personal vs. Business Use: Issues with distinguishing between personal and business expenses, especially in cash use and credit card transactions

Recommendations

  • Strengthen Governance: Implement robust policies for decision-making, financial management, and conflict of interest management
  • Improve Documentation: Ensure thorough and transparent documentation of all significant decisions and transactions
  • Audit and Compliance: Regular audits to ensure adherence to policies and management of public resources

Conclusion

  • TWOA has achieved significant educational outcomes but must align its governance and financial practices with public sector standards to mitigate risks and enhance credibility.