Dirt flies over car grooming for Wananga

Rongo Wetere

The country's largest tertiary education institution faces mounting calls for an Audit Office investigation after a succession of conflict-of-interest claims, the latest a cleaning contract for 350 cars provided to its staff.

Act MP Ken Shirley claimed in Parliament yesterday that the contract to groom Te Wananga o Aotearoa's fleet - which includes LTD limousines - went untendered to a company owned by the partner of the institution's deputy chief executive.

Education Minister Trevor Mallard said he would refer the claim to the Auditor-General's office, which is already investigating conflict-of-interest allegations against the Te Awamutu institution, which received $239 million of taxpayers' money last year.

Mr Shirley said the car-cleaning contract was given to "Gazza's Groomers", owned by deputy chief executive Min Marshall's partner, Gary Wood.

The Herald could not locate a company of that name yesterday and it did not show up in Companies Office records.

Min Marshall did not return calls.

Mr Shirley later told NZPA he understood the vehicle grooming cost a minimum of $50 a car, and that each vehicle was groomed monthly. That meant the yearly contract was worth a minimum of $210,000.

Wananga chief executive Rongo Wetere could not be contacted either but he told 3 News last night the contract was likely to be suspended for performance reasons.

In Parliament, Mr Shirley alleged a series of "rorts" by wananga bosses through connections between them and outside companies.

"It's clear ... that a group of people are getting very, very rich at the taxpayer's expense in this organisation."

He attacked the long-distance Mahi Ora education scheme for migrants, which he said was developed by staff member Susan Cullen - Dr Wetere's daughter - and sold to the wananga for $7 million.

"That is just a pattern of governance and what I believe could well be rorts in this organisation."

As well as the car-grooming business, dozens of shelf companies with the same people in key positions were rorting taxpayers.

An example was Oma Investments, which supplied apparel and resource kits to the wananga. Its shareholders were Dr Wetere, the Te Kuiti campus manager, former chairman of the wananga council and three other council members.

The Audit Office confirmed yesterday that it was investigating claims of conflict of interest relating to Susan Cullen and the wananga.

Assistant Auditor-General Wendy Venter said other claims were being investigated but she would not say what they were.

Meanwhile, Dr Wetere told the Herald earlier yesterday that there was no substance to the Tertiary Education Commission's contention that it had breached funding policies by offering students inducements to enrol.

On Tuesday, Mr Shirley released a letter from the commission to Dr Wetere demanding answers about three reported inducement offers - including one where students from Queensland were offered free flights and accommodation to enrol in a security guard course.

The two other reported breaches were that it offered free laptop computers for a Hamilton course starting next month, and expensive tracksuits and backpacks to Auckland students.

The institution is also facing questions about its overall financial management following a damning email from the Government's representative on the board, Graeme McNally.

Mr McNally, a Deloittes partner, refused to comment yesterday, even after Dr Wetere accused him of not speaking up about his concerns despite sitting on the board for 2 1/2 years.

Close connections

Act MP Ken Shirley claimed in Parliament three contracts were let by Te Wananga o Aotearoa to companies with links to management. They were:

Cars owned by the institution were cleaned by Gazza's Groomers, owned and operated by Gary Wood, the partner of wananga deputy chief executive Min Marshall.

An education scheme for migrants was developed by staff-member Susan Cullen, daughter of principal Rongo Wetere, and sold to the wananga for $7 million.

Shareholders in a firm that provided clothing and resource equipment were Dr Wetere, the Te Kuiti campus manager, former chairman of the wananga council and three other council members.