Recruiter faces suit over Davy

By LOUISA CLEAVE

The Maori Television Service is pursuing legal action against the recruitment agency that recommended John Davy for the position of chief executive.

The board has handed its lawyers an Ernst & Young report which it describes as a formal legal opinion on the appointment process by the Wellington-based agency Millennium People.

Finance Minister Michael Cullen was reluctant yesterday to discuss the Ernst & Young report, saying other considerations might come into play.

The MTS board would not comment on how far along it was with legal proceedings against Millennium People.

Dr Cullen has previously said the contract between Millennium People and MTS contained a clause guaranteeing the quality of candidates.

This could be a key component of any legal action taken against Millennium People by MTS.

Board chairman Derek Fox said last night: "This [Ernst & Young report], among other things, discusses options available to the board arising from the use of Millennium People to recruit executives. One of these options has been actioned."

Millennium People would not comment last night on this development.

Earlier yesterday, the Government released a State Services Commission report which said that Mr Fox had refused to release board minutes about how it employed Millennium People to recruit Davy.

Mr Fox told the commission inquiry he would have to take legal advice before providing the minutes.

State Services Commissioner Michael Wintringham did not pursue the minutes and Mr Fox described the process to the commission "so far as he was able to recall it".

The commissioner reported to Dr Cullen on May 3, four days after Davy was sacked as chief executive for lying about his background and educational qualifications.

A spokeswoman for Mr Wintringham told the Herald that the board minutes were "not of great concern" to the investigation.

Mr Wintringham told Dr Cullen that "those parts of the process carried out by the Maori Television Service cannot be verified without access to the board minutes, although the board chair has described the engagement process as far as he was able to recall it".

The commission was asked to investigate the hiring by MTS of Millennium People to find a chief executive and three other senior executives. The firm was to be paid about $70,000, but has not received a final MTS payment for hiring Davy.

Millennium People director Wayne Ball said no one at the company had been interviewed by the commission or Ernst & Young, which has completed two reports into Davy's employment.

"I think [the Ernst & Young report] concluded, by and large, that MTS acted properly in terms of the hiring of Mr Davy," Dr Cullen said.

Davy was appointed on March 11 and sacked after just seven weeks.

He admitted in court last week that he had made up his CV and will be sentenced this month.

Te Puni Kokiri, the Ministry of Maori Development, is seeking $20,000 advanced to Davy when he was appointed. He used the money to set up a home and buy a Jaguar car.

Davy has told the ministry he is broke. He has returned the car and is facing eviction tomorrow from his $975-a-week home in Kohimarama if he cannot pay the rent.

The State Services Commission said the reference checks by Millennium People were inadequate.

Millennium People had been used by 12 of the 36 Government departments and seven Crown entities to find people for 59 positions.

The agency has reportedly been paid more than $450,000 for all work over the past two years.

The MTS board approached three recruitment companies last November and gave a verbal briefing on its requirements.

Mr Wintringham said the board's decision not to use an open tender process was acceptable, but "what is not clear is the approach the board took to determine the type of consulting firm that would best suit their recruitment needs before approaching the three firms".

Full coverage: Maori TV