Lesley Hoskin is chief executive of the Teaching Council. She has taken a period of "agreed leave" pending the outcome of an investigation into conduct allegations. Photo / Teaching Council
This story has been updated after the Public Service Commission clarified the $1.7m figure in its review was the amount in contracts awarded, not the amount spent.
The Teaching Council “did not appropriately manage all aspects” of a conflict of interest when awarding more than $1.7 million in contracts to a firm run by its chief executive’s husband, a review has found.
The findings are in a just-released Public Service Commission (PSC) report that identified “serious and repeated failures” at the Crown agency over how it managed procurement and conflict of interest processes.
Public Service Commissioner Sir Brian Roche said the failures were not matters of minor or technical non-compliance, but reflected poor oversight and controls, painting a “concerning picture” around the use of public money.
“The council is responsible for upholding high professional standards for teachers,” Roche said.
“It must also meet the highest standards itself. In this case, basic public sector expectations were not met, and in some areas the council fell well short.”
The council’s governing board says it accepts the findings and has now launched an employment process concerning chief executive, Lesley Hoskin.
Education Minister Erica Stanford told the Herald the “significant and serious” findings of this and a report last week highlighted the critical need for major change at the council.
“The findings ... are some of the most serious that I have seen. The reports make it abundantly clear that there are various, highly concerning failures and problems that need to be addressed.”
The PSC report said that in total, an advertising firm run by Hoskin’s husband Brett was awarded about $1.735m in Teaching Council contracts from 2018 to 2025. Hoskin was deputy chief executive at the council from 2016, before being appointed CEO from 2019.
The commission says it doesn’t have information on the actual amount spent by the council over this period as this didn’t fall within the review’s terms of reference.
Lesley Hoskin could not be reached for comment.
Brett Hoskin, who was the managing director of Clemenger Wellington, also known as Clemenger UnLtd, stepped down as a director at the end of last month, Companies Office records show.
The PSC report said that Lesley Hosking “consistently declared the conflict arising from her husband’s role, was not involved in awarding the contracts, and did not direct any person to award the contracts to Clemenger”.
“We did not, however, see evidence that the chief executive’s husband’s shareholding was appropriately declared,” the PSC report said.
“We also consider that the Teaching Council’s approach of simply excluding the chief executive from key parts of procurement processes involving Clemenger did not appropriately manage all aspects of the conflict of interest, including any perception risks.”
“Given the chief executive’s conflict, we expected to see strict adherence to the agency’s procurement policy and detailed documentation. This would have assisted in mitigating perception risks. As explained above that did not occur. We also expected greater involvement from the then chair of the Teaching Council’s governing council in managing the chief executive’s conflict in relation to Clemenger. This would have assisted with an appropriate and more robust risk assessment, also ensuring that the risks arising from the conflict were managed at the right level.”
As first reported by the Herald in November, the PSC probe was sparked by a whistleblower’s letter to Stanford raising serious concerns about procurement, conflict of interest management, and wider organisational practices involving Hoskin and other senior leaders.
The PSC report found “serious and repeated failures” in the Teaching Council’s procurement and conflict of interest processes between late 2018 and early 2025.
The report also investigated matters relating to “digital engagement services, and te reo Māori instruction, translation, and Māori cultural advice”.
Key findings of the report include:
Roche said the shortcomings created “avoidable organisational and reputational risks” and had the potential to undermine trust in the Teaching Council.
The investigation report had been referred to the chair of the Teaching Council’s governing board, David Rutherford, to determine what action to take.
As revealed by the Herald, Lesley Hoskin went on “agreed leave” in October amid an independent investigation into her conduct after the PSC launched a separate probe into the whistleblower’s protected disclosure claims.
The letter to Stanford said ministerial oversight was needed to ensure accountability and safeguard public funds.
“The use of taxpayer funds places a higher level of scrutiny,” the letter stated.
“Unfortunately, what we have observed over the last 12-18 months raises significant concerns about governance, ethical standards and staff welfare at the council.
“There appears to be a pattern of procurement decisions that create, at the very least, a perception of conflicts of interest.
“Even if the work was deemed necessary, directing such substantial funds to a business so closely linked [to] the chief executive raises questions of ethical governance,” the letter claimed.
Stanford immediately referred the allegations to the PSC.
Council chairman David Ferguson said the newly appointed governing board was made aware of the PSC probe in August and had fully co-operated throughout the five-month investigation.
He said it was clear from the PSC investigation and other reviews that significant improvement was needed across the organisation.
The board was “fully committed to immediate change to restore teachers’ trust and confidence in their professional regulatory body”.
He would not comment on the future of Lesley Hoskin as an employment investigation was now underway.
Lesley Hoskin is yet to publicly comment on the PSC report or the investigation into her conduct.
The Herald sought comment from Brett Hoskin last year about concerns relating to the alleged conflicts of interest, and the amount of contracts awarded to his firm.
He did not respond personally.
Clemenger UnLtd co-director Dan Shawa said last year he was “very confident” proper procedures were followed with respect to successful bidding for creative and advertising contracts with the Teaching Council.
“At all times Clemenger UnLtd adhere strictly to government procurement rules, including management of any identified conflicts of interest and transparent participation in government tender processes.”
He said the company had “always followed procurement rules and expectations”.
Today’s developments follow the release last week of a scathing review into the Teaching Council, which found the agency had lost focus on its core function of safeguarding children and needed transformative change.
And on Saturday, the Herald revealed Stanford had requested an urgent independent probe into the organisation to check if child protection failures at the agency had allowed potential sexual predators to gain access to classrooms.
The Ministry of Education has also launched a separate analysis of the council’s legal framework to identify potential loopholes that may have allowed dangerous actors – such as disgraced teacher and now convicted child sex offender Timothy Fisher – to slip through the cracks.
Stanford told the Herald the issues identified were not minor or technical in nature requiring only slight adjustments.
“We have recently seen significant revelations that highlight key issues which should not be understated.”
Above all, there had been inadequate focus on ensuring child protection, a paramount function of the council, Stanford said. The reports also revealed problems with leadership, culture and purpose.
“Teachers have long questioned the use of the fees within the organisation and these reports show teachers were right to do so. Teachers should be well supported to succeed in their roles, and this is something I have confidence will be addressed.
“These and the other pressing issues raise serious questions concerning the capability of previous boards. A regulatory standards-setting body should hold itself to the very highest level, enabling trust and confidence. These reports show previous boards have failed to do this.”
Stanford said she had confidence in the new board to restore sound governance.
Lane Nichols is Auckland desk editor for the NZ Herald with more than 20 years’ experience in the industry.
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