Awanuiarangi has since agreed to pay a $5.9 million settlement to the Tertiary Education Commission and will undergo its own internal and external investigation.
Mr Flavell was the chief executive of Awanuiarangi in 1999. He said one course was not a reflection of the quality of education it provided.
"I am confident that their [Awanuiarangi's] credentials will stack up in this one-off case, they have produced and continue to produce a high level of degrees and credentials for thousands of people," he said.
"First thing, they obviously got it wrong and they have done the right thing by paying the money back. Once the investigation is completed they will be in a far better position on knowing what happened.
"They provide a culturally appropriate place to learn and contribute to second chance learners achieving their goal, whether they be Maori or otherwise. From time to time, certain courses may come to the attention of the Tertiary Education Commission and need to be investigated."
It was earlier reported the Warriors took the course last year on the recommendation of Mrs Grant - billionaire Sir Own Glenn's representative on the Warriors board. She was also the director of the wananga's National Institute of Performing Arts but has since resigned. Mrs Grant has referred all media inquiries to her lawyer Richard McIlraith, of law firm Russell McVeagh, who said she had offered to assist with any potential SFO inquiry.
"She is absolutely confident she has done nothing wrong and is happy to co-operate," Mr McIlraith told media.
Chief executive of Awanuiarangi Distinguished Professor Graham Smith said the situation was unacceptable and brought "immense disappointment to me and my team".
"What I would like to say is that we are satisfied that the corrective steps ... that have now been implemented will ensure that this situation does not arise again."