Wananga in $2.5m IT debacle

Te Wananga o Aotearoa spent millions on developing software that was "out-of-date before it was implemented" and has never been used, says an internal report.

Acting chief financial officer John Mote ordered the investigation of software development projects between the wananga and Malaysian company InfoQuest.

The report, obtained by the Herald, shows that the wananga paid more than $2.5 million for the outdated software, which was supposed to be used for human resource management and online learning.

The report has surfaced before the release of an Auditor-General's investigation into the embattled institution, due next month.

A senior source at the wananga said problems over dealings with InfoQuest were not considered in the audit, as "they had enough to consider".

The source also confirmed that none of the software paid for was being used by the institution.

Wananga chief executive Rongo Wetere, who is on paid leave, and former deputy chief executive Min Marshall were leaders in the InfoQuest project. Ms Marshall is understood to no longer be employed by the wananga.

The report highlights poor decision-making in agreeing to the software development with InfoQuest. It points to a failure to investigate the value and appropriateness of the deal, and a lack of monitoring to ensure the quality of the finished product and its relevance for a New Zealand market.

Managers also downplayed risks and problems.

Difficulties in co-ordinating development because of language and time zone barriers were also seen as problematic.

The relationship, which began in late 2003, was also criticised for lack of detailed contracts despite the value of the work and the commitment to "unknown and complex technologies".

A "potential conflict of interest" is also raised involving Ms Marshall as her former partner, Gary James Wood, also a former wananga employee, was also a director of InfoQuest Management (NZ) Ltd.

Herald attempts to contact Mr Wood and Ms Marshall were unsuccessful. It is understood Ms Marshall is overseas.

Dr Wetere said he could not discuss the project as it was being investigated by the Auditor-General's office and he was bound by a confidentiality agreement.

The report also questions the payment of $166,250 into the personal account of Ganesin Supayah, chief executive of InfoQuest, for work done by the company.

The report could not verify that the payment was approved by the Malaysian company, and raised issues over implicating the wananga in "any tax avoidance schemes".

But the harshest criticism is directed at InfoQuest's software, with the online computing content described as "generally poor" and not meeting NZ Qualifications Authority unit standards.

The report said the wananga would have to make a "significant commitment" of resources to bring the human resource software up to a usable standard, a cost that must be balanced against spending about $55,000 to buy a complete HR package from a local vendor.

Almost $1 million was spent developing the Human Resource Management System software.