The council of the embattled Te Wananga o Aotearoa looks set to move against chief executive Rongo Wetere following the release of an audit report this week.
The results of an Auditor-General investigation into the organisation is expected to be presented in Parliament tomorrow.
The investigation followed allegations by former
Act MP Ken Shirley in February of nepotism, financial mismanagement, cronyism, poor course quality and dubious enrolment practices.
The Herald understands that the audit has found no criminal wrongdoing but that concerns raised are likely to be used to pressure Dr Wetere out of his job.
A senior wananga member who did not want to be named said negotiations had continued for over a month with Dr Wetere to seek his resignation. Dr Wetere is understood to have been stood down on full pay since October.
The source said that although the audit did not highlight the scope of problems predicted by some commentators, it added to other issues raised by the council and senior management.
It is understood the report raises concern about taxpayer-funded first-class travel by Dr Wetere and his partner, Marcia Krawll, to Cuba last year. Conflict of interest issues are also raised over contracts worth more than $1 million for landscaping, fencing and maintenance work paid to Dr Wetere's brother, Ara Wetere.
It is understood the council is also likely to take a hard line on a failed IT venture managed by Dr Wetere in which more than $2.5 million was spent on developing management and online learning software that was never used.
On Saturday the Weekend Herald revealed that companies owned by Dr Wetere's daughter, Susan Cullen, had earned $74.2 million in five years from wananga contracts. The arrangement, while above board, is seen as embarrassing for the institute and to have added to pressure on Dr Wetere to stand aside.
A family member who would not be named said Dr Wetere had resisted resigning so he could defend himself when the audit was released. The family member said it was not the "loaded gun" the Government and council hoped it was and warned of fallout if moves were made against Dr Wetere.
Dr Wetere and wananga chairman Craig Coxhead did not return calls.
