Government swings axe over kickback scandal

By FRANCESCA MOLD political reporter

One head has rolled and the Government is eyeing another at its $40 million-a-year Maori broadcasting agency after a scathing report into kickbacks and mismanagement.

The Government last night removed the chairman of Te Mangai Paho after a new Treasury report found serious failings in his handling of an employee accused of receiving kickbacks from a private company.

Toby Curtis announced his resignation at a press conference in Maori Affairs Minister Parekura Horomia's Beehive office.

He insisted it was his decision, but it was clear the Government had demanded his scalp in the hope it would end the scandals that have plagued the funding body over the past year.

Mr Horomia said the concerns had gone on far too long, and he was "thankful" for Mr Curtis' resignation.

The minister also moved to neutralise the issue politically by appointing businessman and former National Party Maori vice-president Wira Gardiner as acting chairman.

Mr Curtis, father of actor Cliff Curtis, said he had not been "sacrificed" by the Government. After 18 years in broadcasting, he was ready to hand over to someone with a "fresh outlook".

The report, made public only an hour after the Government received it, detailed failures by Mr Curtis, the board and the agency's chief executive, Trevor Moeke.

It said both men "demonstrated poor judgment".

Mr Moeke escaped the Government's axe last night, but Mr Horomia indicated the new board's first job would be to review his position in light of the critical findings.

Asked if he had confidence in Mr Moeke, Mr Horomia said: "That is something for the board."

The agency promotes Maori language and culture by allocating taxpayer money for Maori music, radio and television programming.

It has eight full-time staff, and is governed by a board appointed by the Maori Affairs Minister. Last year it gave $30 million to Maori television and $10 million to Maori radio.

The report was commissioned after Act MP Rodney Hide accused former Te Mangai Paho radio manager Tame Te Rangi of receiving cash payments for commentating for Maori Sports Casting International - a private company to which he also gave Government money.

Mr Te Rangi resigned in March after it was revealed that he had a 10-year-old fraud conviction that he had not disclosed to the agency.

The report found Mr Te Rangi received $2730 for commentating at up to 50 sporting events in New Zealand and Australia.

His expenses of $14,000 were paid by the broadcasters who had received public money for covering the events.

Mr Te Rangi has denied receiving payment, saying he was reimbursed for expenses.

The report said Mr Te Rangi's commentating conflicted with his job as a public servant.

It criticised him for not declaring his interest in outside broadcasting jobs that he was recommending for funding.

It was thought Mr Te Rangi began commentating in April 2001.

Initially, Mr Moeke and Mr Curtis allowed it because Mr Te Rangi was skilled and they thought it would strengthen his relationship with Maori broadcasters.

The report found they had "demonstrated poor judgment in this regard".

When industry representatives raised concern about the conflict of interest, Mr Moeke tried to get Mr Te Rangi off air.

He tried several times between December 2001 and last July, but Mr Te Rangi ignored his directives.

The report found Mr Moeke's attempts to deal with the "recalcitrant employee" were inadequate.

Mr Moeke would not comment last night.

The Te Rangi scandal is the latest in a string of problems for Maori broadcasting.

In 1997, the pilot channel Aotearoa Television came to a messy end after a funding scandal, including revelations that former director and NZ First MP Tuku Morgan spent taxpayers' money on clothes and underpants.

Last year, the newly appointed chief executive of the Maori Television Service, Canadian John Davy, was sacked for making false claims in his resume.