Aid may not keep wananga working

New Zealand's largest tertiary education provider, Te Wananga o Aotearoa, may fold even if the Government intervenes, says Education Minister Trevor Mallard.


Mr Mallard yesterday announced he had taken further steps towards dissolving the troubled wananga's council and appointing a commissioner - the highest level of Government intervention possible.

"I will not rule out the wananga folding in the longer run, but it is my hope that with a commissioner it can be saved."

Mr Mallard said he had received advice that there was a serious level of financial risk and risk to the operation and long-term viability of the wananga.

Last month the Government was forced to bail out the near-insolvent wananga with a $20 million short-term loan.

"It does not have audited accounts for the last year and is unlikely to get them because there is doubt about its ongoing concern capability.

"There are some debts that are unlikely to be paid unless the Crown renews a loan to the wananga and I have doubts about the ability of the council and for that matter part of the management to work their way out of the situation."

The wananga, which has debts of about $5 million, has Crown financing of $12 million, with up to $20 million available if necessary, although Mr Mallard said he did not believe he would have to lend the full amount.

Mr Mallard said it would be difficult for the wananga to continue at its current scale - about 22,000 full-time students. It might be more appropriate for it to focus on working with Maori who had not had success in the education system.

The wananga council now has 21 days to make submissions as to why a commissioner should not be appointed. Last night, council chairman Craig Coxhead said the wananga's financial position was improving and it intended to take full advantage of the opportunity to make submissions.

"We are confident that our submissions and the restructuring plans we are already implementing will give the minister confidence in the quality of our governance and avoid the dissolution of the wananga's council."

There has been speculation that the wananga will take legal action if a commissioner is appointed.

Government trouble-shooter Wira Gardiner, who was appointed to the council by Mr Mallard in March, is thought to be the most likely person to be become commissioner.