Wananga probe on fast track

The Government is poised to announce a further inquiry into Te Wananga o Aotearoa, amid growing questions over its finances.

Ministers - who are already moving to appoint a Crown observer to the tertiary institute's board - are now likely to either set up an independent review or ask the Auditor-General to fast-track key aspects of his inquiry to make an urgent report.

He has said his full inquiry will take several months.

Sources say that apart from the recent allegations of financial mismanagement, tension between the Government and the wananga mounted last year when its chief, Dr Rongo Wetere, approached Finance Minister Michael Cullen about accessing a suspensory loan facility created by a 2001 Treaty of Waitangi settlement.

It is understood the wananga wanted the bulk of the loan - $12 million to $15 million - to repay one of its subsidiary trusts for intellectual and capital property it had invested in the wananga.

Some critics claim the proposal would be an abuse of taxpayers' money and allege this is one reason the Government is wary of approving the loan, which would not have to be paid back.

But accounting firm Ernst and Young is understood to have advised the wananga council its proposal was viable.

The dispute may also centre on interpretation of the $40 million deed of settlement.

The Government said yesterday that the deed was not a public document - a highly unusual situation.

Neither Mr Mallard nor Dr Cullen would discuss the matter.

Meanwhile, at least three members of the 12-strong council are understood to have pushed for Dr Wetere's resignation at a meeting on Wednesday night, but he still has majority support.

One source said his contract expired in December, which meant the council retained the option of not renewing it.

Last week, the council voted to reduce his role, appointing an operational manager to handle the day-to-day running of the institute.

Other structural changes are believed to be under consideration, and Bruce Bryant is understood to have been offered the new position of chief financial officer.

Mr Bryant is already chief financial officer at Auckland's Waipareira Trust and was a ministerial appointee on the wananga's council.

He would not comment yesterday.

The wananga has refused to answer almost all questions from the Herald this week, despite repeated calls and emails.

Act MP Ken Shirley met the Auditor-General yesterday to hand over details of his allegations and said afterwards that he believed there should be a judicial inquiry.

National deputy leader Gerry Brownlee said that if Mr Mallard was unhappy with the council, he should sack it, not just appoint anobserver.

There had already been several Crown appointees on the council, he said.

Meanwhile Turoa Royal, the chairman of the national wananga council, Te Tauihu Association of Wananga, urged both sides to resolve the matter quickly, saying it was endangering the wananga brand.

"I wish that the minister and the wananga would hurry up and get together and tidy it up. Straightaway please."

He said the country's three wananga had played a crucial role in "legitimising in Maori minds that tertiary learning is okay".