Wintec's Audit NZ report into management's spending costs $50,000 more than estimated

Wintec council chairman Barry Harris knows the outcome of the audit investigation into spending by Wintec's senior management. Photo / Alan Gibson

A draft report investigating Wintec's overseas spending and expenses has finally been completed at a cost of $130,000, which is $50,000 more than initially estimated.

Wintec chairman Barry Harris confirmed the council had received Audit NZ's confidential draft report and was in the process of reviewing it and providing feedback.

Once the report was finalised by Audit NZ, it would be received by the council before details on the findings would be released to stakeholders and media at the same time, he said.

The draft report has cost Wintec $129,972 excluding GST, and includes $9972 in disbursements.

It was estimated the initial audit work would cost Wintec approximately $80,000 and was to be completed within three months. It has now taken eight months to get to the draft report stage.

Harris would not confirm when the final report would be completed.

"The process around such a report is that it needs to done thoroughly. The estimation of three months was just that, an estimation by Audit New Zealand. They will take as much time as required to conduct the audit and finalise the report."

Harris announced the review almost a year ago in "response to media commentary and coverage at the time and the effect that was having on public confidence around Wintec's operations".

As part of the investigation, Audit New Zealand was asked to examine overseas expenditure and restructuring costs, in particularly travel.

There was a focus on expenses incurred by the chief executive and his executive team between 2009 and 2017 in relation to travel to Hong Kong and China, as well as travel expenses incurred by the chief executive and his executive team to anywhere else between 2013 and 2017.

Redundancy and severance payments, including those bound by confidentiality agreements, made to staff between 2013 and 2017 were also being checked to ensure they met Wintec's policies and the Office of the Auditor General's standards and good practice guidelines.

Meanwhile a separate investigation into historic allegations against Wintec chief executive Mark Flowers is still underway at a cost of $100,000.

Queen's Counsel Simon Mount was conducting the independent inquiry into the 2015 complaints concerning Flowers.

The investigation was reopened after a report by Wellington-based lawyer QC Victoria Casey found the original report clearing Flowers of any wrongdoing was lacking. Her report cost $30,000.

Meanwhile Wintec senior adviser and director of international David Christiansen is currently acting chief executive while chief executive Mark Flowers remains on sick leave indefinitely.