Former students and staff have questioned Tai Poutini Polytechnic search and rescue training.
Polytech denies claims students were short-changed in emergency training.
Search and rescue volunteers say they completed a five-month taxpayer-funded training course at a polytechnic in one week.
Former employees and students at Greymouth's Tai Poutini Polytechnic (TPP) have raised allegations of shortened courses, inadequate oversight of students, overly generous marking and lax health and safety standards.
The polytechnic has strongly rejected the claims, saying it is confident it will not have to refund any taxpayer money.
Recent investigations into course funding at six tertiary institutions have uncovered more than $25 million in overpayments, much of it related to over-claiming for the number of learning hours delivered.
The Tertiary Education Commission told the Weekend Herald it was aware of matters of concern at TPP and "in accordance with our usual processes we have raised some questions ... and asked them to respond".
According to a former contract tutor who says he helped develop TPP's search and rescue curriculum, a course in advanced rope use that originally took five months to complete is now delivered in seven days.
Tony Wells sent his concerns to Labour MP David Cunliffe, who tabled the letter in Parliament in September and called for an investigation into "credit rorting".
A former student who completed TPP's ropes course earlier this year backed up Mr Wells' view. The student, who asked not to be named as he now works for a high-profile organisation, told the Herald the 480-hour course consisted of a maximum of 80 hours, and that estimation was "generous".
Some of the units included in the course were not taught at all. "There was a one credit unit for how to use a two-way radio - we didn't actually use radios for the whole course."
A TPP representative provided the Herald with its explanation of the course's 480 hours of learning, which it has submitted to TEC.
It said the course involved 50 hours of self-directed learning prior to commencement, including the completion of a workbook; 84 hours of instruction during the seven-day on-site block and another 296 hours of practice after the on-site instruction - one-on-one with a tutor or self-directed.
The former student said the pre-course workbook took him less than three hours to complete, the practical component of the course was at most 70 hours, and he had not been instructed to perform any more work or been contacted at all by TPP since completing the course in June.
Tai Poutini Polytechnic chief executive Allan Sargison said some students had a high level of competence prior to the course and could be signed off after seven days.
"In 2015 we had three students like this. While they were still assessed and awarded 48 credits, we did not claim 48 credits worth of funding for these students."
The student said he doubted tutors had enough time to properly assess students' abilities.
"It was actually a really good course. The tutors themselves are bloody knowledgeable guys. But I think they are being cut short as well."
Mr Wells also claimed in his letter to have been enrolled in courses at TPP as a student while he was teaching them - a practice highlighted by forensic accountants who uncovered overfunding at Wairarapa's Taratahi Agricultural Training Centre and Taranaki's Western Institute of Technology totalling $11.2 million.
Mr Sargison denied that TPP had a policy of enrolling tutors in courses and said none of the tutors from the time that allegation was made still worked for Tai Poutini.
The polytechnic, which provides specialist industry training across nine campuses, has also been accused of putting the safety of its students at risk by misrepresenting the quality and effectiveness of its assessment processes.
A former quality assurance officer, who also asked not to be named, wrote to TPP's governing council in December 2013 detailing concerns about its assessment practices and alleging a "cavalier" attitude towards health and safety.
She cited a letter from a senior manager following a visit from an external moderator insisting that only student assessments that reflected positively on the polytechnic be put in front of moderators.
"Any deficient samples should have been noted and dealt with internally and only samples reflecting the standards required should have been submitted to SKILLS moderators," the letter states.
The former employee said correct practice was for samples to be randomly selected. Instead of rectifying issues with the assessment process, TPP managers ordered staff to vet assessments before they were given to moderators.
Incorrect student assessments she sighted involved tutors marking incorrect answers to questions about health and safety as correct.
They were sending people off believing that they have this knowledge and they don't. I was very worried.
Mr Sargison said he did not believe the organisation had attempted to manipulate the external moderation process. "I would be surprised if that were the case," he said.
None of the three employees involved in the case cited by the Herald still worked for TPP, he said. "TPP complies with the common practice in post moderation to send three sorts of samples - one which shows good answers, one which shows acceptable answers and one which shows inadequate answers."
Mr Sargison said he not believe any investigations by TEC would result in TPP being made to repay taxpayer funding."I certainly don't think we are going to end up with a large bill, no."
Tertiary Education Minister Steven Joyce said the TEC was looking into allegations made by Mr Cunliffe in the House; however, "these complaints were made by a competitor of Tai Poutini [Mr Wells], who has made other complaints about the organisation in the past which weren't upheld".
Mr Cunliffe said it was "well past time" for a review of TPP, as multiple sources had indicated serious issues at the organisation.
FMA investigating private education provider
Intueri, New Zealand's biggest private education provider, is being investigated by the Financial Markets Authority.
Tertiary Education Minister Steven Joyce confirmed in Parliament this week the FMA was looking into the company, which runs courses for domestic and foreign students in New Zealand and online students in Australia.
Intueri told investors last week that the Tertiary Education Commission had begun reviews into two of its schools, Quantum Education Group and the New Zealand School of Outdoor Studies, which operates a dive school.
The company said it was making provision for reimbursement of taxpayer funding to the dive school in case of an adverse finding and warned the potential impact on 2015 earnings was $4 to $5 million. Its share price dropped from $1.30 to 35c before recovering to around 50c this week.
Labour's David Cunliffe asked Mr Joyce in Parliament on Tuesday what action he or his officials had taken when they became aware Quantum Education Group had reported a 91 per cent completion rate in 2012, "despite over 1500 of the 3700 students who received student loans to study at Quantum that year dropping out, making their true completion rate more like 47 per cent".
Mr Joyce replied that Mr Cunliffe's statement "may not be correct" but a number of agencies were investigating, including the FMA. Intueri this week said it believed investors had lost confidence in the sector because of an Australian crackdown on vocational education providers. It would co-operate fully with the TEC reviews, which it believed were primarily focused on issues inherited from previous owners.
Intueri described itself in an October presentation to investors as the largest PTE group in NZ.