The former principal of a Tauranga kura was unjustifiably dismissed after being accused of deliberately misappropriating school funds for herself and her husband's advantage, the Employment Relations Authority has ruled.
Rapua Timoti has been awarded $20,029 for lost wages and compensation by the Employment Relations Authority.
The award was made after a 50 per cent reduction to mark how substantially Ms Timoti's conduct contributed to the situation in which her grievance arose, the authority said.
Ms Timoti was dismissed as principal of Te Kura Kaupapa Maori o Otepou on August 22, 2014 by limited statutory manager Lex Hamill after a dispute over payments made to her husband, who was then a relief teacher at the kura.
Her husband John Beilby also worked at the kura in 2003.
In his dismissal letter, Mr Hamill said Ms Timoti had breached acceptable standards of conduct and "seriously and detrimentally" affected the level of trust required of her position .
Mr Hamill decided Ms Timoti had "created an opportunity" for financial advantage for herself and her husband, and employed Mr Beilby in 2014 contrary to his "clear directive".
The directive was issued after learning Mr Beilby was subject to a Teachers' Council investigation.
Mr Hamill took advice from the School Trustees' Association and brought in Yvonne Preece to investigate.
The ERA ruled the scope of Ms Preece's inquiry was "unduly narrow" including failing to speak to some parties involved.
Ms Preece said she felt "stonewalled" by Ms Timoti and her advocate, and struggled with the school's "random" filing system.
The ERA agreed that a more "co-operative and open response" could have meant a less severe outcome for Ms Timoti but ruled the investigation was flawed.
Evidence gathered could have shown she was "either careless" or had performed poorly in her duties, but failed to prove she acted deliberately or in a corrupt way - the grounds for her dismissal.