Second government agency reviews contract awarded to firm of Minister Mahuta's husband

A DoC spokesperson declined to answer questions about the contract outside the OIA process. Photo / Michael Craig

A second government agency is reviewing the process by which it engaged Ka Awatea Services, a consultancy wholly owned by Gannin Ormsby, the husband of government minister Nanaia Mahuta.

In November, 2020 the Department of Conservation (DoC) signed a contract with the firm to "look at shaping and influencing how to embed Rangatahi [young people] representation within Te Papa Atawhai [DoC] and scope opportunities to influence change…"

Sia Aston, DoC deputy director general of public affairs, confirmed an internal review is under way into whether department processes and policies were followed in relation to the contract worth some $52,000 (excluding GST). The contract was not completed.

The DoC review began this month and Aston said the department intends to conclude its work by the end of October.

In May, the Ministry for the Environment (MfE) also undertook an internal review of the processes by which it appointed Ormsby and two of his relatives to a working group in 2020.

The total value of contracts in that case was $90,000 (excluding GST). The report is complete and ministry officials said it will be released shortly.

A total of $11,800 (excluding GST) was paid to Ka Awatea Services under the DoC contract: a consideration that the contract document states was due "upon signing". No "deliverables" were required.

In response to National Party written parliamentary questions, Minister of Conservation Poto Williams said the department "engaged" Ka Awatea Services on June 11, 2019.

However, the written contract between the parties, released by the department under the Official Information Act, was signed some 17 months later.

A DoC spokesperson declined to answer questions about the contract outside the OIA process.

It's not clear why the balance of the contract was unfulfilled.

Deliverable "milestones" listed in the contract included: articulating to the department's Māori-related unit, Kahui Kaupapa Atawhai, "the dynamic contribution rangatahi [young people] can bring to Te Papa Atawhai [DoC]"; supplying a "regional register of rangatahi advisers"; the "proposition of an advisory model"; and "identification and proposed models of rangatahi projects".

Gannin Ormsby did not respond to requests for comment.

Minister Mahuta has never held ministerial responsibilities for DoC.

Relating to matters where she has ministerial responsibility, a spokesperson for her office has said: "Where there have been conflicts they have been disclosed to the Cabinet Office. Where there have been conflicts, they are managed appropriately, in accordance with the Cabinet Manual."

Opposition Parties

Both the National and Act parties welcomed the review, and called for a wider investigation into a recent history of government contracts and appointments awarded to family members of Minister Mahuta, and to companies owned by them.

Simeon Brown, National spokesperson for Public Service, said he would like to see the Public Service Commission investigate.

"This [DoC] contract fits into a wider picture of government procurement of services from someone who is married to a minister," he said.

"We need to know that proper procurement processes have been followed and that the conflicts of interest were declared and managed appropriately."

Act Party leader David Seymour said: "Clearly there is an extraordinary pattern of this company [Ka Awatea Services] getting a wide range of jobs across different government departments, requiring different expertise, while it's not clear what the qualifications are."

Seymour said the DoC contract raised the question of what value was gained for the public money spent.

Labour Party Minister Nanaia Mahuta and husband Gannin Ormsby. Photo / Supplied

A history of contracts and appointments

Also in 2020, government housing agency Kāinga Ora awarded Ka Awatea Services a contract worth $66,846 (excluding GST) to facilitate meetings and workshops to engage Māori and present a "high-level overview" of the agency's Auckland housing projects.

Kāinga Ora official Hinemoa Awatere said the contract was awarded on a sole-source basis (meaning it was not subject to a competitive bid process) for reasons including that the services could only be supplied by one supplier.

Mahuta was Associate Minister for Housing (Māori Housing) at the time. A spokesman for Kāinga Ora said the work did not fall under Mahuta's ministerial responsibilities.

Last month, a spokesperson for Mahuta said: "The contract did not require ministerial approval so no conflict was raised."

Awatere said there was no communication with ministers in the contract selection process and that "no conflicts of interest were identified".

By contrast, the Ministry for the Environment did identify a "major appearance risk" and "perceived conflict of interest" in procurement documents when it appointed Gannin Ormsby, his nephew Tamoko Ormsby, and Tamoko's wife Waimirirangi Ormsby to a waste advisory group in 2020.

The contracts were sole-source and worth $90,000 excluding GST.

Advice MfE officials obtained from the Public Service Commission contained the view that being the minister's husband should not preclude his involvement in the MfE work, but that "a conflict of interest is present".

The commission recommended a "robust management plan" and officials put a variety of measures in place, including regular meetings to discuss any potential risks as they arose and mitigation.

Mahuta was Associate Minister for the Environment at the time the contract was awarded but her responsibilities did not include the area of work covered in the contract.

Questions put to the Public Service Commission under the OIA show MfE was the only government agency to have sought the commission's advice in awarding contracts to Gannin Ormsby or his company.

Ka Awatea Services also received a grant of $28,300 from the Ministry of Māori Development's "suicide prevention" fund in April, 2021.

Mahuta was then, and remains, the associate minister for the department. Her ministerial responsibilities did not include purview of the fund.

The funding application form, supplied to the Herald in June by Gannin Ormsby, proposed the inclusion of Mahuta in the project (a three-day series of workshops, seminars and excursions for 40 Māori young people).

Mahuta was listed in the project's "proposed list" of four panelists, who would critique participants' potential ventures and business ideas. The panelists would be paid $2000 each to cover travel and koha for their time and the $8000 cost would be covered by the Ministry for Maori Development funding, the application said.

A spokesperson for Mahuta said: "The minister was not invited and did not attend the event."

The application document also noted under "conflict of interest": "Yes - Nanaia Mahuta is the wife of Ka Awatea Director Gannin Ormsby and aunty of Ka Awatea directors and Toa Taua Taiao [the project's name] creators Tamoko and Waimirirangi Ormsby."

In June, Ormsby said the project was successful and overseen by his nephew, Tamoko Ormsby, and Tamoko's wife, Waimirirangi Ormsby.

Under the OIA, the Ministry for Māori Development also released an "assessment of funding proposal" document related to the Ka Awatea project.

The document recommended that the ministry's "investment sub-committee" fund the project. Under "conflict of interest" it states: "No severe conflicts of interest have been identified."