He was dismissed in September 2015 for alleged inadequate reporting to the board; issues identified by the Education Review Office; annual audit reports and failure to respond to those; and inappropriate employment of teaching staff.
In an earlier ERA decision, Paenga also objected to statements he said were made about him by board chairman Pereniki Tauhara at a hui after his dismissal.
"[Paenga] alleges that Mr Tauhara informed the hui that Mr Paenga had been dismissed for serious misconduct and had misappropriated funds in the kura's investment account containing $270,000."
Tauhara denied having said "misappropriation of funds" and claimed someone had tried to put words in his mouth by asking whether he was saying Paenga had done this. Tauhara reported that his response was that no, he had not said that.
The ERA said it appeared the board had gained a sense in the first half of 2015,
after Paenga went on sabbatical leave, that it could get better from a principal.
"The issues which the board raises are largely performance or competency issues
which should have been addressed in that manner," the earlier decision said, finding that Paenga was unjustifiably dismissed.
Craig said in the latest decision she was satisfied Paenga had lost substantial remuneration and he should be reimbursed for the $8479.26 remuneration lost in the month before he found another job, as well as for the decreased pay he received in his new role. He was awarded a total $47,564.
Craig accepted that Paenga's distress at losing his job was "profoundly exacerbated by the impression gained by community members at the hui of his dismissal being due to dishonesty".
"Mr Paenga was a relatively long-serving employee with around nine years'
service," the decision said.
"His family's life was intertwined with the kura. He had been intensively involved in the expansion of the kura. His role as teacher and tumuaki was an important part of his life and his self-esteem suffered due to his removal from that role and that community."
Craig found Paenga had done nothing blameworthy to reduce the remedies.
He was awarded $25,000 compensation.