Wananga tries to fend off Government

Te Wananga O Aotearoa will attempt to avert having the Government seize control of the institution by presenting evidence its financial situation has been unfairly portrayed.

The Weekend Herald understands members of the wananga's council will present Education Minister Trevor Mallard with details of a financial rescue plan on Monday.

The plan will show the wananga has a cashflow shortage of around $8 million dollars and does not need the full $20 million of a short-term loan that Cabinet agreed to on Monday.

A senior member of the wananga, who did not want to be named, said the wananga would also ask permission to call in debt of around $6 million owed by the Aotearoa Institute.

If that debt is repaid the wananga will have a shortfall of around $2 million which the source said can be easily secured.

It is understood the wananga will consider taking legal action if the Government rejects the rescue plan.

Education Minister Trevor Mallard said he did not want to comment until he had received details of the plan from the wananga.

On Monday, Mr Mallard said he had received advice the wananga was on the brink of insolvency.

Because of the wananga's financial difficulties, Mr Mallard has been able to begin the statutory process to sack the wananga's council and appoint a commissioner.

The Government has been accused of pushing the tertiary institute to the point of collapse so that it can seize control of it.

On Wednesday night the council resolved to advise Mr Mallard that the process of appointing a commissioner should be halted.

After the meeting chief executive Rongo Wetere said he believed the wananga's financial situation had been unfairly portrayed.