NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / New Zealand

Jonathan Coleman accused of covering-up bungled financial forecast

Nicholas Jones
By Nicholas Jones
Investigative Reporter·NZ Herald·
7 Mar, 2016 11:22 PM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Health Minister Jonathan Coleman said he has full confidence in the director general of health. Photo / Mark Mitchell

Health Minister Jonathan Coleman said he has full confidence in the director general of health. Photo / Mark Mitchell

Labour has accused Health Minister Jonathan Coleman of covering-up a bungled financial forecast that saw the Ministry of Health unexpectedly ask for $18 million.

Dr Coleman has dismissed that, saying the story has been overblown by media and he has full confidence in the director general of health, Chai Chuah.

Labour's health spokeswoman Annette King said Mr Chuah should offer his resignation over the mistake that Treasury have assessed as "serious financial mismanagement".

Whether to accept it or not was a decision for Dr Coleman. Ms King did not go as far as saying she would accept the director general's resignation if she were health minister.

"It would depend if I had other reasons to be unhappy with his performance...I think the minister, for the first time, actually said something critical of him yesterday."

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Ms King said the Ministry of Health's mistake had only emerged publicly after a Labour researcher noticed one line in a Treasury report on the ministry's finances: "I think [a cover-up] started off in the Ministry of Health, but has moved on to the minister."

The controversy relates to a multi-million dollar project to refit the ministry's Wellington head office. That was approved by the Government in 2014, after the ministry said it could use forecast cash reserves to meet the $24 million cost.

However, the ministry later learnt its financial team had miscalculated, and there wasn't enough money to complete the project.

Advertisement
Advertise with NZME.

Before the last Budget it put its hand out to the Government for $18 million in order to finish the job.

In a statement, Mr Chuah said he acknowledged that unacceptable mistakes had been made, and when it was brought to his attention he commissioned Pricewaterhouse Coopers to undertake an independent review to establish what occurred, and ensure it would not happen again.

He said the project has now been completed without the need for any additional Government funding.

"The forecasting error does not affect health service funding and relates only to the Ministry of Health's accommodation operating costs."

The funding needed for the refit was being secured by spreading the cost over the life of the building's lease, which would be "fiscally neutral".

"We anticipate the project will be completed within budget by the end of this year," Mr Chuah said in the statement.

This morning, Ms King said the claim the lease would be "fiscally neutral" seemed extremely suspect.

"If it is spread out over the life of the project, someone is paying for it. And I would say it is being paid for by increased rent to the landlord over the period of the lease - that is money that comes out of operation."

"I can't understand why the Auditor General wasn't asked to look at what happened...we wouldn't have known that there was a Pricewaterhouse Coopers report. To me, this whole thing stinks of a cover-up."

On his way into a caucus meeting, Dr Coleman said Mr Chuah had learnt some lessons, but was doing a good job helping deliver better health services.

Advertisement
Advertise with NZME.

The cost had been structured into the lease.

"But look, that was always the agreement that Treasury had with the Ministry of Health, and they weren't meant to come back and ask for that $18 million. So, to be honest I think you have overblown this a little bit, but there's no question they made a forecasting error, they have got a new CFO, they have got new personnel there and new processes.

"It was not good financial management, absolutely. And they have been slammed for it and they have taken responsibility...but, in terms of the director general, he is absolutely the right man for the job. It is not a resignation level offence."

Mr Chuah was confirmed as director general and chief executive of the ministry in March last year. A qualified chartered accountant, he had been acting in the role since November 2013.

Save

    Share this article

Latest from New Zealand

New Zealand

Serious crash closes SH1 between Taupō and Tūrangi, delays expected

04 Jul 09:01 AM
New Zealand|christchurch

Two pedestrians injured in serious Canterbury crash, road closed

04 Jul 08:40 AM
New Zealand|crime

'Please do not do it': Man inflicted intense pain on woman during violation

04 Jul 08:00 AM

There’s more to Hawai‘i than beaches and buffets – here’s how to see it differently

sponsored
Advertisement
Advertise with NZME.

Latest from New Zealand

Serious crash closes SH1 between Taupō and Tūrangi, delays expected

Serious crash closes SH1 between Taupō and Tūrangi, delays expected

04 Jul 09:01 AM

The crash involved two vehicles on SH1 near Jellicoe Pt around 7.45pm.

Two pedestrians injured in serious Canterbury crash, road closed

Two pedestrians injured in serious Canterbury crash, road closed

04 Jul 08:40 AM
'Please do not do it': Man inflicted intense pain on woman during violation

'Please do not do it': Man inflicted intense pain on woman during violation

04 Jul 08:00 AM
'Couldn't even walk': Hospo staff foil legless drunk driver who blew six times legal limit

'Couldn't even walk': Hospo staff foil legless drunk driver who blew six times legal limit

04 Jul 07:20 AM
From early mornings to easy living
sponsored

From early mornings to easy living

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP