Polytech investigated over conflict claim

By STUART DYE, education reporter

The Auditor-General will investigate a polytechnic which claimed millions of dollars of taxpayer money for a computer course.

Christchurch Polytechnic Institute of Technology (CPIT) ran a programme called Cool-IT that attracted about 18,000 people and generated more than $15 million for the institution.

But senior polytechnic staff were part-owners of a company that was paid $5.4 million to produce CDs used by the programme, said the National Party's education spokesman, Bill English.

Auditor-General Kevin Brady said yesterday he had decided to conduct a full audit and inquiry after Mr English's complaint and at CPIT's request.

The investigation would focus on the polytechnic and its deal with Brylton Software.

Mr English said CPIT's director of development was also a shareholder and director of Brylton Software, which produced and marketed the Cool-IT software.

"This gives the appearance of a conflict of interest and the taxpayer has an interest in whether or not there is any truth to allegations that the programme generated considerable private benefit for polytech employees."

Mr Brady said the audit would examine policies and procedures for identifying and managing conflicts of interest, look at whether there were any potential or actual conflicts, whether CPIT's policies and procedures were followed and whether CPIT and its representatives acted properly.

The polytechnic said it did not "simply hand out CD Roms and claim funding". The usual academic requirements, procedures and scrutiny were applied to the course.