Wananga offered to fund Aussie students, says MP

The country's biggest tertiary institution offered to pay for Australians to come to New Zealand to study to become security guards, Parliament was told yesterday.

Act MP Ken Shirley later released a Tertiary Education Commission letter demanding answers from Te Wananga o Aotearoa management about the claim, which would breach a ban on inducements for students.

The February 2 letter to chief executive Rongo Wetere sought an explanation for reports that the wananga offered to pay fees, flights, accommodation, apparel and for passports for Queensland students who enrolled in the course.

It also demanded explanations for two other reported breaches - that the wananga offered free laptop computers for a Hamilton course starting next month and expensive tracksuits and backpacks to Auckland students enrolled in unspecified courses.

Alarm bells are also ringing over the financial management of the Te Awamutu-based institution, which got about $239 million in Government funding last financial year.

An email from the Government appointee on the wananga board, Graeme McNally, to chairman Craig Coxhead says the institution faces "nothing less than a disaster" in its 2004 financial result. Released by Mr Shirley, it cites financial management concerns including a "culture of non-accountability and extravagance".

Mr McNally cited operating spending of 9 per cent (or $15 million) above budget, and capital spending of $9 million over budget.

"I have spent a lot of time with Crown agencies, ministers, select committees ensuring that the positive progress by the wananga is conveyed - often in the face of some serious negative comments," the email said. "I am beginning to think that those efforts have been a waste of my time (and my reputation) when the wananga has had serious breakdowns in its financial management."

Both Prime Minister Helen Clark and Education Minister Trevor Mallard told Parliament yesterday they were not satisfied with the value for money taxpayers were getting.

Mr Mallard said it would be inappropriate for the wananga to offer a security guard course such as the one Mr Shirley described, but he did not know if that was the case.

Dr Wetere could not be contacted last night but he told One News he did not think he should resign, suggesting that Mr Mallard should instead.

The wananga is being investigated by the Audit Office for potential conflicts of interest, and is being audited by the Qualifications Authority (NZQA).

The Education Ministry has also warned the wananga not to call itself "The University of New Zealand" in a new domestic and international advertising campaign.

The commission issued a statement yesterday saying it was urgently seeking a response to the questions about course inducements.

National education spokesman Bill English said both the commission and NZQA - in the firing line over the scholarship debacle - would be in the gun over the course. NZQA accredits tertiary courses and the commission funds them.