Government grabs wananga cash control

The Government has seized financial control of Te Wananga o Aotearoa and has signalled that its size may be significantly reduced.

It has also unveiled plans which could see tertiary funding for non-degree courses slashed.

The moves are an admission that the wananga's problems are considered serious, and that the Government has concerns about the quality and cost of the vast number of "sub-degree" courses across the tertiary sector.

National Party education spokesman Bill English said the wananga had followed Government policy and was being punished for what the Government had finally conceded was a huge tertiary sector botch-up.

Education Minister Trevor Mallard said the tertiary sector review, announced yesterday and to be carried out by the Tertiary Education Commission, would review pricing, quality and value of sub-degree courses across the sector.

Up to a third of those courses, including some in universities, will be reviewed, which is "expected to lead to funding shifts" next year which could involve capped enrolments, the commission said.

Te Wananga o Aotearoa chief Rongo Wetere yesterday echoed Mr English's view that the wananga was being being used as a scapegoat, saying the minister was "on a witch-hunt to reduce the size and influence of the wananga".

Dr Wetere maintained there had not been financial impropriety at the wananga and made it clear that while an inquiry was welcomed to clear the institution's name, it would not bow to some of Mr Mallard's plans to rein it in.

Mr Mallard made it clear yesterday that he wanted to reduce the size of the wananga, saying it had exceeded its "core functions as a wananga providing education in a Maori context".

He said over time the wananga would look more like its counterparts at Whakatane and Otaki, an organisation that "values Maori knowledge and focus on Maori in a way that they [wananga] were meant to under the Education Act".

The Government wanted to renegotiate the charter with Te Wananga o Aotearoa to achieve that end, Mr Mallard said.

The wananga has more than 60,000 students - the equivalent of about 33,000 fulltimers.

Dr Wetere said enrolments at other wananga were as low as 2500 and his would not accept being culled to that size. "We would go to the country on that sort of statement."

Students were entitled to choice and the Government had no right to restrict the courses being offered, including those to non-Maori.

"The wananga has never been a separatist institution."

It emerged yesterday that the Government had at least partly refused payment of a suspensory loan because of skyrocketing numbers of non-Maori enrolments.

Mr Mallard said quality education delivery was the priority and the Government had particular concerns about the wananga on several fronts.

Those revolved around the lack of independence between Dr Wetere and the council and a lack of transparency in the relationship between the council and a subsidiary company, Aotearoa Institute. The institute is the parent company which established the wananga and some senior staff also sit on it.

A Government observer, Brian Roche, had been appointed to the wananga.

Mr Mallard said if the wananga wanted to access bank overdraft facilities it would have to give Mr Roche control of the purse-strings and allow him to become a Crown manager.

The minister warned that the Crown wanted financial control and planned to acquire it whether or not an overdraft was sought.

However, he suggested one would be sought, saying if the wananga declined to agree to handing over financial control "the probability of the wananga becoming insolvent is significantly increased".

Mr Mallard has asked the Auditor-General to fast-track inquiries already under way into Aotearoa Institute.

The minister also revealed for the first time yesterday he had concerns about overseas travel by senior wananga staff and had asked for that to be also included.

Dr Wetere said the wananga would not require access to the overdraft facility, "therefore the delegation of financial powers to a Crown manager will be unnecessary".

Should the situation change the wananga would revisit the issue. He said the wananga was being unfairly targeted. Student enrolments were down 10 per cent and he wanted the matter resolved as soon as possible.

He said of Mr Mallard: "I hope that when the report comes out that he's man enough to apologise."

Government moves

Crown observer Brian Roche appointed to council to report regularly to Trevor Mallard.

Prohibit any borrowing by the wananga unless authorised by Roche.

Resistance to new arrangement will increase risk of insolvency; Mallard appointing commissioner to replace council.

Auditor-General to fast-track part of inquiry relating to Aotearoa Institute, wananga deals to buy course and intellectual property, and international travel by senior management.

Encourage whistleblowers under Protected Disclosures Act.

Change charter of wananga to return to provider of education "in a Maori context".