University of Waikato vice-chancellor Neil Quigley has faced criticism for risking the university’s independence. Photo / Mark Mitchell
University of Waikato vice-chancellor Neil Quigley has faced criticism for risking the university’s independence. Photo / Mark Mitchell
The Auditor-General says the University of Waikato was dismissive of its public accountability amid a probe into how the university spent more than $1 million on an advisory firm run by former National Party Cabinet minister Steven Joyce.
In a letter to the university’s chancellor released today, Auditor-GeneralJohn Ryan found the university “does not seem to appreciate that it is accountable to Parliament and the public for whether it has followed appropriate processes when spending public money”.
“Relying on a view that the university is ‘entirely satisfied’ with the work produced does not provide that assurance.”
Ryan also said the university didn’t consider it “necessary or appropriate” to comply with his request for an explanation of the work done by Joyce Advisory Services from the time a contract was first entered into in 2019.
“Although we received subsequent confirmation that there was no further information to provide, I remain concerned at the initial response.
“A public organisation that is spending public money should be able, and willing, to explain what that money has been spent on, to my office and to the public.”
The university’s vice-chancellor Neil Quigley was not available for an interview, but in a statement the university admitted variations to the contract could have been better documented and accepted it was “accountable for the expenditure of public money and for the outcomes resulting from that expenditure”.
Joyce wouldn’t comment, saying it was a matter between the university and the Auditor-General.
Regarding the ongoing contract with Joyce’s firm, Ryan believed the university’s procurement policy hadn’t been properly followed and there was insufficient evidence to back up Quigley’s claim that Joyce’s firm was the only suitable option to deliver the services – a rationale used to justify not considering other firms.
Former National Party Cabinet minister Steven Joyce has worked with the university since 2019. Photo / Mike Scott
In September, Quigley faced criticism for risking the university’s independence after documents revealed he went to considerable lengths to help National develop its policy proposing a new medical school at the university, calling it a “present” to a future National government.
In June last year, the Tertiary Education Union was “shocked and appalled” by the university paying Joyce’s company almost $1m between December 2019 and December 2022, at a time it was cutting staff amid financial pressures.
Media reporting prompted further inquiries from Ryan. The initial contract was for three years with a total minimum agreed amount of $288,000. It was extended in 2022 and by October last year, the university had paid about $1.1m with work ongoing.
Joyce’s firm had been contracted to provide services including serving on the board of the division of management, providing presentations on public policy and giving advice to senior university staff.
Ryan’s inquiries found the university invoked a provision within its procurement policy that enabled it to engage Joyce’s services without considering other options.
He criticised the university’s inability to sufficiently explain why Joyce’s firm was chosen and why Quigley believed Joyce’s firm was the only viable option.
“That explanation, and the assurance it would provide to the public that public money has been appropriately spent, is missing.”
Auditor-General John Ryan believes the university hasn't appreciated how it was accountable to the public. Photo / Mark Mitchell
The university’s policy included the requirement for the vice-chancellor to approve procurement if it was done without assessing all options, but Ryan said this hadn’t occurred in this case with Quigley telling him there was “little point in him writing to himself”.
“This misses the point that it is through comprehensive recording of procurement processes that the public can have confidence that good decisions have been made to spend public money.
“This is even more important where the vice-chancellor is using a power to put the usual processes to one side.”
Another argument used by the university was that it wanted to exclude Joyce from working with any other tertiary education provider, but Ryan didn’t buy it.
“In our view, paying an amount necessary to secure exclusive services is not sufficient to provide assurance that the money being spent on those services is appropriate and the money is therefore being well spent.”
Ryan cited Quigley’s belief the “outcomes produced by the work” were more important than the “process by which the money is spent to achieve those outcomes”.
Ryan agreed providing good outcomes for the public was of value but said it was equally important to balance that with how outcomes were achieved.
“To do otherwise risks an approach where the ends justify the means.”
Adam Pearse is a political reporter in the NZ Herald Press Gallery team, based at Parliament. He has worked for NZME since 2018, covering sport and health for the Northern Advocate in Whangārei before moving to the NZ Herald in Auckland, covering Covid-19 and crime.
