Troubled wananga merely has a 'cash-flow problem'

Te Wananga o Aotearoa is claiming that its financial problems are not serious enough to merit the Government taking control of the institution.

Council chairman Craig Coxhead said the country's flagship Maori education centre was merely suffering a temporary cash-flow problem.

Last week, Education Minister Trevor Mallard said the wananga was on the brink of insolvency, requiring a $20 million Government bail out.

He then began the statutory process to sack the wananga's council and appoint a commissioner.

But on Friday a wananga council source, who did not want to be named, said the $20 million was overstated and that the shortfall was actually $8 million.

The source said a proposal was put to the minister seeking permission to call in debt of around $6 million owed by the Aotearoa Institute.

In this week's statement Mr Coxhead reiterated the council's stance that the cashflow crisis was temporary and did not meet an Education Act threshold allowing the minister to dissolve the council.

And he said the council was in the process of implementing and reviewing existing management and structural changes, on top of recent key staff appointments, that would help ensure recent financial problems were not repeated.

A spokesman for Mr Mallard said he was still reviewing the council's proposal and was not prepared to comment.