New HNZ bullying charges

Housing NZ outgoing chief executive Helen Fulcher attended the hearing yesterday but was overseas at the time the controversial settlement was finalised. Picture / Mark Mitchell

National Party housing spokesman Phil Heatley has raised fresh allegations of bullying at Housing New Zealand (HNZ).

The Auditor-General this month completed a report, which cleared the state housing agency of allegations it cooked its books, paid a former contractor "hush money" and had a culture of bullying.

But Mr Heatley yesterday revealed an anonymous letter from a person claiming nine staff in the agency's acquisitions and accounts department had been bullied by a manager who was eventually ousted.

"He was removed from the job but only after considerable pressure was brought to bear by the nine employees," said Mr Heatley, quoting from the letter at a hearing of Parliament's social services committee.

"The nine employees were also forced to sign confidentiality agreements surrounding this series of events. Their treatment by senior management was bullying at its worst."

HNZ chairman Pat Snedden said such claims were detracting from the agency's focus on housing people in need and he would be reluctant to waste more time looking into it.

The Auditor-General's report had cleared the agency of bullying in its property improvements department.

But Mr Snedden said if the committee formally requested HNZ look into the matter he would consider it.

Mr Heatley later said the committee had agreed to formally ask HNZ for answers in relation to the issues raised in the letter he had received.

Under questioning on the Auditor-General's report, Mr Snedden said the agency was looking into improvements in how it put together confidentiality agreements.

The report said a so-called "gagging clause" in a settlement with a disgruntled contractor was "inappropriate" and "unwise".

Mr Snedden said the agency was considering putting a clause into all such contracts that the Protected Disclosures Act, which sets out legal rights and protections for state employees wishing to raise concerns, supersedes any such agreement.

Mr Snedden said HNZ was still having an "employment conversation" with Gerard Coles - the senior manager who negotiated the terms of the contractor's settlement.

Mr Snedden said none of the senior managers who signed off the settlement had been sacked.

HNZ chief executive Helen Fulcher, who also appeared at the committee, was overseas at the time the settlement was finalised. Ms Fulcher is leaving HNZ to return home to lead Housing South Australia from July 1. Her move was not connected to the controversy.

- NZPA