PDF (582KiB, 86 pages) - Office of the Auditor-General New Zealand

Recommendations

Info

Rongo Wetere’s whānau and their connections with TWOA2.23 Our report focuses heavily on Rongo Wetere and members of his whānau. Thefact that we name them does not mean that they are solely responsible forgoverning and managing TWOA. TWOA is a large organisation and manyother individuals play important roles in its governance and management, but ithas not been necessary to name them.Rongo Wetere2.24 Rongo Wetere is the Tumuaki, or chief executive, of TWOA, and has ledTWOA since it was established in 1993. He was also a director of MO1Limited until 30 August 2005.2.25 Until 31 March 2005, he was a trustee and the managing director of the AITrust. Until 15 April 2005, he was a director of Oma Investments Limited. Heremains a director of other non-trading subsidiary companies of the AI Trust. 102.26 Rongo Wetere has no private companies or businesses of his own.Susan Cullen2.27 Susan Cullen is the daughter of Rongo Wetere. She is neither an employee ofTWOA nor a paid consultant, but she has worked voluntarily for TWOA overmany years. Her work has included drafting strategic documents, managingspecial projects, and rewriting educational course material. We were told thatshe has never charged for her time, even though some of this work has beenextensive.2.28 Ms Cullen has been granted the designation “adjunct professor” by TWOA.This is not a paid position, but an honorary title recognising her long-standingsupport for TWOA.2.29 Ms Cullen is an owner 11 and director of many companies that have donebusiness with TWOA in recent years (see Figure 4).1011University of New Zealand Limited and The University of Aotearoa (NZ) Limited.Susan Cullen is a 25% shareholder in Global Origins Limited, and the soleshareholder of all of the other companies listed in Figure 4.20
Figure 4.Business transactions between Ms Cullen’s companies and TWOACompany Nature of transaction Year Amountpaid tocompanyOra Limited Joint venture with TWOA over the Kiwi Ora course 2004 $26.7mOra Limited Joint venture with TWOA over the Kiwi Ora course 2003 $12.0mMahi Ora Limited Sale of Mahi Ora course to MO1 Limited in 2001 2001 $7.0mAwarua Limited Payment by MO1 Limited for Lifeworks course 2003 $1.7mAwarua LimitedWairau PropertyDevelopmentsLimitedGlobal OriginsLimitedLife WorksInternationalLimitedReimbursement for direct costs incurred inundertaking various TWOA special projects2004 $376,000Lease of 2 properties to TWOA 2004 $81,000Printing contract 2004 $15,000Joint venture with TWOA over the Mahi Ora course 2000-01 UnknownKingi Wetere2.30 Kingi Wetere is a son of Rongo Wetere. He was employed as General Managerof MO1 Limited from its inception in 2001 until 2004 (although this includes aleave of absence, and a time when the role was part-time and shared). He wasalso a director of MO1 Limited from its inception in 2001 until 2005.Immediately before his employment with MO1 Limited, he was working forMs Cullen’s company Mahi Ora Limited.2.31 Kingi Wetere was a director of Oma Investments Limited from 2003 to 2004.He became General Manager of Oma Investments Limited in 2005, andremains in that role.2.32 He was employed as one of 2 Pouhere at TWOA from 2004 to 2005 (seeparagraph 4.27 for a discussion of Pouhere).2.33 Kingi Wetere has a significant ownership interest 12 in Power Chill NZ Limited– an air-conditioning business that has undertaken work for TWOA and MO1Limited. Kingi Wetere is also a director of this company (and until late 2004was the sole director).2.34 Kingi Wetere is no longer employed by TWOA.12Kingi Wetere and William Wetere have an indirect interest (through family trusts andanother company) in a 60% shareholding.21
Page 10 and 11: For example, in 2003 TWOA bought th
Page 12 and 13: Part 1 - Introduction1.1 In this Pa
Page 14: What we did1.13 We obtained a signi
Page 17 and 18: The AI Trust and the entities it co
Page 19: Figure 2.Continuing arrangements be
Page 23 and 24: • Power Chill NZ Limited, Aranui
Page 25 and 26: Figure 6.How Rongo Wetere, his chil
Page 27 and 28: e based on thorough analysis or adv
Page 29 and 30: 3.21 There are 2 aspects to dealing
Page 31 and 32: Part 4 - Appointing TWOA and MO1Lim
Page 33 and 34: William Wetere - Information Office
Page 35: 4.25 The third contract was agreed
Page 38 and 39: Part 5 - Acquiring land and buildin
Page 40 and 41: consider that conflicts of interest
Page 42 and 43: 5.27 There was no written business
Page 44 and 45: 5.41 The costs significantly over-r
Page 46 and 47: Part 6 - Acquiring goods and servic
Page 48 and 49: subcontractors. TWOA told us that i
Page 50 and 51: 6.25 Kingi Wetere acknowledged to u
Page 52 and 53: Wetere’s brother, in the manner i
Page 54 and 55: 6.58 In our view, the invitation to
Page 56 and 57: 6.74 Once TWOA’s conflicts of int
Page 58 and 59: 6.86 We were told that this has nev
Page 60 and 61: mainstream education. It involves p
Page 62 and 63: 7.20 Similarly, TWOA could not prov
Page 64 and 65: 7.32 We were told that the idea for
Page 66 and 67: TWOA personnel we spoke to are plea
Page 68 and 69: 7.58 TWOA communicated the nature a
Page 70 and 71:
documented business cases and trip
Page 72 and 73:
8.22 Rongo Wetere did not begin to
Page 74 and 75:
8.38 We did not identify clearly pr
Page 76 and 77:
8.55 The first donation was made to
Page 78 and 79:
8.70 It was suggested during the co
Page 80 and 81:
8.78 Figure 8 excludes the airfares
Page 82 and 83:
Appendix 1 - Terms of reference for
Page 84 and 85:
financial position and financial vi
Page 86:
Conflicts of interestState Services
show all

PDF (582KiB, 86 pages) - Office of the Auditor-General New Zealand

Create successful ePaper yourself

Delete template?

Save as template?