Maori TV fought to offer Davy big salary package

By LOUISA CLEAVE

The Maori Television Service board was so determined to hire John Davy in March that it clashed with the State Services Commission over the package he was offered.

The salary package was made up of a $140,000 base, $50,000 for at-risk performance, $20,000 for also doing the job of chief financial officer, plus unspecified moving expenses.

The commission told board chairman Derek Fox that the agreement was in no form to be offered to anyone, let alone be signed.

"The proposal to pay $190,000 plus a $20,000 add-on is so far over the norm that a compelling business case must be presented to responsible ministers, who must be given sufficient time to take advice and also to talk to the Minister of State Services," the commission said.

The service hit back, saying it did not accept the commission's advice and was under no obligation to adhere to its policy.

A few days later, Davy's appointment and salary were signed off by Maori Affairs Minister Parekura Horomia. He said the package "represented the board's considered judgment of what is required to attract the preferred candidate with the specific skills necessary to meet the business needs of the Maori Television Service".

The documents also reveal Te Puni Kokiri, the Ministry of Maori Development, became nervous about the $21,000 salary advance it authorised for Davy, and there were fears it had breached the Public Finance Act.

Davy told the ministry he had approached banks but they were not prepared to lend him money because he was considered a foreigner.

Davy, who was deported to Canada last week after three months' jail for fraud, never repaid the advance.

Te Puni chief executive Leith Comer signed off the $21,000 on Audit NZ advice that it was above board.

But senior ministry figures were in a panic three weeks later - the day after Davy's bogus qualifications were first exposed by the Herald.

The papers also reveal that Davy was asked to investigate spending by Mr Fox. Te Puni Kokiri said it had been paying for items "not in accordance with our policy" and wanted more information about Mr Fox's travel, accommodation and entertainment claims.

The ministry authorises spending by the television service until legislation making it a legal entity is passed.

Audit New Zealand was about to inspect Te Puni's approval and control of the service's spending when, after Davy had been in the job about two weeks, Michelle Ewington, the acting group manager of finance and planning, asked him to discuss the issue with Mr Fox.

"One area I believe we fall short in is the 'travel, accommodation, and entertainment-related expenditure' of the chair ... there is no annotation on the bills as to what it was for/who was entertained/reason for the travel etc," she wrote in an email. It does not specify a total amount.

Davy was asked for any suggestions on the past expenditure, "as we haven't been very successful in obtaining this information for audit trail purposes".

The ministry said it would forward him the invoices.

Davy said Mr Fox was away but he had put the concerns on his agenda of topics to discuss with him.

The subject is not mentioned again in the documents released.

Asked in Parliament yesterday about the investigation, Mr Horomia said there was "detail on issues around Mr Fox", but did not offer any further explanation.

A Te Puni Kokiri spokeswoman said last night the questions about Mr Fox's spending was "process matter" that had been addressed at the time.

Full coverage: Maori TV