Maori TV must clean up its act says report

By LOUISA CLEAVE

The Maori Television Service has been told to tighten its internal business systems in the wake of John Davy's dismissal.

The disgraced former chief executive used inadequate budgeting methods but did not put the service at any financial or legal risk, says a report by accounting firm Ernst & Young.

The service must also revisit three critical initiatives, including a controversial studio development at Auckland's Viaduct Harbour, and document them in greater detail, says the report, released yesterday.

An interim chief executive and chief financial officer should be appointed to help revise the business plan and budget, it says.

"To date, various establishment board members have been acting in semi-executive capacities in relation to various issues, with a resultant risk of dilution of normal governance controls that result from a separation of duties."

The report found no evidence that Davy authorised any payments not connected to the service.

He requested about $11,500 of a total $283,809 spent by the service in just over six weeks while he was chief executive.

Ernst & Young could not confirm whether corporate policies written by Davy - including a code of conduct that bore similarities to that of a Canadian aluminium firm - breached copyright, but if they did the exposure was minimal.

A review of Davy's commitments included "discussions relating to the future employment of a senior employee". The report does not elaborate on the negotiations but says they are not binding.

Similarly, negotiations with TV4 for its signal to transmit the Maori channel and the Carbine Group to develop a studio and offices at the Viaduct are not binding.

The report advises the service to revamp its administration policies, including a system for making decisions on the studio and transmission method.

The Government ministers responsible for the service, Maori Affairs Minister Parekura Horomia and Finance Minister Michael Cullen, said they expected it to "come to an informed decision on studio facilities, after following an appropriate evaluation process".

The recruitment agency hired to find a chief executive and three other senior executives went on the defence yesterday.

Millennium People director Wayne Ball said the company spoke to five referees about Davy's personal and professional life.

He said the company did this after the service's selection panel chose Davy as the preferred candidate.

Mr Ball said Millennium People instructed the service to carry out its own credit and security checks by writing on March 13: "Mr Davy's offer of employment should be subject to a) no adverse credit reports, b) security clearances . . ."

The company had a $70,000 contract to find the executives and the final payment is being withheld.

A Government inquiry found that 12 departments and seven Crown entities have used Millennium People to appoint 59 people in the past two years. Five departments or entities paid the company a total of $383,227.

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