Blame game begins as Davy goes

By LOUISA CLEAVE and STAFF REPORTERS

HERALD INQUIRY - The sacking of Maori Television Service chief executive John Davy has prompted a flurry of finger-pointing over who is to blame.

After a day of drama culminating in the dismissal of Mr Davy because of irregularities in his resume, MTS chairman Derek Fox and Prime Minister Helen Clark blamed recruitment agency Millennium People for not checking his credentials.

But National's broadcasting spokeswoman, Katherine Rich, said Mr Fox and his board were responsible for the appointment and should bear the blame.

"Derek Fox isn't paid big director's fees to then blame others when things go wrong."

Mr Davy must today return $20,000 the MTS loaned him, and independent auditors will start checking the work he did in his 46 days on the job.

Helen Clark yesterday raised the possibility that the MTS could take legal action against the recruitment agency, saying: "If you pay for a professional job to be done and it hasn't been, you may wish to consider what action you take."

Announcing the sacking five days after Herald inquiries raised questions about Mr Davy's background, Mr Fox said: "I don't think it was the board's job to go and check intimate details."

He doubted Mr Davy would take legal action to regain his job, or stay in the country long.

Mr Fox said the Government had assured him it still had confidence in him and his fellow directors.

Millennium People's proprietors, husband and wife Wayne Ball and Makere Papuni, defended their "extensive reference" checks.

They said they had been "taken in" by a sophisticated fraudster.

Hone Harawira, the head of the Maori Electoral College, which appoints members to the MTS board, said the board should accept responsibility for what happened.

A formal report would be prepared by mid-week setting out the problems.

"I expect that people generally are big enough to say, 'Well, that was a stuff-up, but let's get on with it'."

Opposition MPs are expected to attack the Government and the Minister of Maori Affairs, Parekura Horomia, who oversees MTS, in Parliament today.

Mr Horomia indicated last night that he backed the board in the controversy, and said it had acted promptly and appropriately.

The MTS board unanimously appointed Mr Davy to run the new television channel, which received $3.8 million from the Government for transmission and operating costs.

Mr Fox said he acted promptly after he was alerted on Saturday morning by Millennium People that there was a problem with the Master of Business Administration degree Mr Davy claimed to have got from Denver State University.

But the Herald had alerted Mr Fox the previous day that Mr Davy's degree could be bought over the internet for US$159 ($354) and had been raising questions about other aspects of his background since Wednesday.

When faxed copies of the MBA available over the internet, Mr Fox told the Herald: "Look, I have to say I'm trying very hard to be calm here ... You haven't got one thing that has stood up."

But yesterday he told reporters that he flew from his Mahia home on Saturday and confronted Mr Davy that evening to seek an explanation.

He suspended him, and the board's legal advice was to give the chief executive until 5pm yesterday to supply a satisfactory explanation.

"He hasn't been able to do that so I have gone on to dismiss him."

The former CEO appeared plausible and had tried to put his reason for having his background "altered" down to "certain work he did in the past", but Mr Fox said he did not accept that.

While Mr Fox concentrated yesterday on revelations about Mr Davy's degree, Herald inquiries have found more discrepancies, including:

* Mr Davy last year told prospective employees in New Zealand that he was director-general of an international environmental conference, Globe 90, held in Vancouver in 1990.

The conference never had a director-general, and the conference president, Rex Armsted, told a Canadian newspaper that he had never heard the name John Davy.

* Mr Davy said he had worked for Hong Kong firm Asia Pacific Investment Advisors Ltd between July 2000 and June last year. Company boss Shane Weir said Mr Davy had been employed on a six-to-nine-month contract.

* His CV included a reference to being the Canadian national fencing champion. No one has been able to find corroborating evidence.

* The CV also referred to Mr Davy being a former referee for the National Hockey League, the professional body which runs ice hockey in North America. A website - www.hockeynightinasia.com - uses him to answer questions on ice hockey in its "Ask the Ref" slot. But a former referee colleague in Whistler, British Columbia, said he was a social-grade ref and had done a one-day course.

Earlier, the Herald had cast doubt on Mr Davy's claim that he was a member and adviser to the British Columbia Securities Commission. The commission had no record of a John Davy.

Among his other "non-conflict directorships" was member and adviser to the Middle East Round Table for International Relations.

The Herald has been unable to find the organisation, and staff at the Ministry of Foreign Affairs and Trade had never heard of it.

Last night, Mr Davy was refusing to answer questions from the four-bedroom Kohimarama home he rents for $975 a week.

The MTS board has called in auditors from Ernst and Young to check work done by Mr Davy during his tenure.

Mr Fox said a report would be given to the electoral college and Government ministers as soon as possible.

Though Mr Fox said the board got details about Mr Davy on Saturday, the Herald first contacted MTS directors last Wednesday with questions arising from its inquiry into the Canadian's background.

As a result, Mr Davy was asked by director Craig Soper on behalf of the board to provide documents to answer the questions about his qualifications.

On Thursday, the board refused to respond to further Herald queries.

But Finance Minister Michael Cullen said he was concerned by the Herald article casting doubt on Mr Davy's CV, and called for a full report from the board.

He also asked Treasury officials to make inquiries into Mr Davy's background.

On Friday, the board said it had investigated the claims and chairman Derek Fox said the directors were satisfied with the recruitment process.

After the Herald faxed Mr Fox copies of fake degrees on Friday night, he told the newspaper it proved nothing.

"Do a bit of Maori bashing? That's exactly what you're doing. Everything you have raised so far has shown to be incorrect. I have to be satisfied and that's what we have done. We have done our checks."

Asked if he would go back to Mr Davy with the information uncovered by the Herald, he said: "What new information? I've told you it doesn't resemble that [degree faxed to him]. How much of that don't you understand? I am referring you to my statement. You've asked the question and I've given you the answer."

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