Housing boss told off for 'gagging clause' delay

Housing New Zealand (HNZ) chairman Pat Snedden has been told off by a parliamentary committee for being too slow to alert Housing Minister Chris Carter about a controversial settlement with a former contractor.

An estimates report from the committee said MPs were concerned Mr Snedden knew about a controversial "gagging clause" in the contract two weeks before he alerted the minister.

Mr Snedden told the committee last month it was a simple mistake.

He overlooked the details of the settlement due to the fact he was focused on getting to the bottom of serious allegations of financial wrongdoing at HNZ made by the contractor.

HNZ was subsequently cleared of any wrongdoing by the Auditor-General.

The Auditor-General found the controversial clause, which banned the contractor taking his concerns to the minister, MPs or the media, was inserted at the behest of the contractor.

The committee report said it expected an accountability process to be in place to ensure such issues were reported to the minister immediately.

National Party housing spokesman Phil Heatley said he was pleased the breakdown in communication had been formally recognised.

- NZPA