Dr Rongo Wetere, head of Te Wananga o Aotearoa, is understood to have been stood down on full pay late last month. The move came days before a draft Auditor-General's report into the troubled institution was released to those involved.
It is understood the wananga's board asked Dr Wetere to
take leave.
Council chairman Craig Coxhead said he was not able to comment on Dr Wetere's employment status, but refused to deny he was on leave.
Dr Wetere could not be reached for comment and did not return calls yesterday.
It is understood Dr Wetere was in Auckland on Friday discussing the audit report with his lawyers.
Act MP Ken Shirley, who made accusations against the wananga, said he had not seen the report but was aware of some of its detail. He understood that what the wananga had done was wrong, it was out of control, and "yes, it upheld the culture of extravagance and waste".
Mr Coxhead said he could not comment on the report.
The investigation into the institution began last September following concerns about potential conflicts of interest. It was extended in February after further allegations of misuse of funds, and claims that executives' relatives had benefited from wananga practices.
The Government has been accused of withholding the report to avoid political embarrassment. However, a spokeswoman for Education Minister Trevor Mallard said the minister had not seen the report and had no authority over its release.
It is understood that while the audit uncovered no fraud or illegality, examples of poor financial decisions and mismanagement are likely to embarrass both the organisation and the Government.
The report is also understood to criticise financial dealings between the wananga and members of Mr Wetere's family.
