A senior manager is dead and a Serious Fraud Office investigation has been launched following a probe into an agricultural college that uncovered millions of dollars of unjustified taxpayer funding.
The results of a Tertiary Education Commission (TEC) investigation into funding irregularities at Taratahi Agricultural Training Centre were released this afternoon following investigations by the New Zealand Herald.
Taratahi has agreed to repay $7,549,000 it received over a six-year period during which it overcharged TEC for courses it delivered. A second breach involved the enrolling of 67 staff in an entry-level programme when little or no teaching took place.
The Taratahi review followed two similar investigations, at Te Whare Wananga o Awanuiarangi in Whakatane and Taranaki's Western Institute of Technology, which uncovered nearly $10 million in overpayments relating to incorrectly reported student numbers and course requirements.
Taratahi's former chief executive, Dr Donovan Wearing, died suddenly in January - three months after the TEC confirmed it was undertaking a 'targeted review' of the organisation.
The New Zealand Herald has been told Dr Wearing addressed staff at the sprawling campus just outside Masterton about the investigation on January 21. The 52-year-old father of six then returned home, where he was later found in a critical condition. He was taken to Wellington Hospital where he died at 10.30pm.
Dr Wearing's death has been referred to the coroner.
The SFO said it was investigating matters "related to Taratahi Agricultural College" but would not comment on details because the investigation is ongoing.
Established in 1919, Taratahi owns and operates assets valued at more than $100 million. It has 135 staff and more than 2000 students. It manages 50,000 stock including sheep, beef and deer, and milks a herd of 2500 cows. It has a resident campus near Masterton and non-resident campuses in Northland, Auckland, Waikato, Bay of Plenty, Taranaki, Manawatu, Hawke's Bay and Southland.
The investigation into Te Whare Wananga o Awanuiarangi discovered that New Zealand Warriors staff and players completed an 18-week tourism course in just one day.
Donna Grant, the daughter of Sir Howard Morrison, was the head of performing arts at Awanuiarangi, which repaid $5.9 million to the TEC following an investigation that found more than 200 students - including 94 players and staff from the Warriors league club - were incorrectly issued certificates stating they had completed the Hei Manaaki Maori tourism course.
Warriors club members devoted just one day to a course that should have taken 18 weeks to complete. Certificates from the Hei Manaaki course were also granted to volunteers who helped out at the 2013 Te Matanini national haka championships in Rotorua - many of whom did not even know they had been enrolled. In total 217 certificates were withdrawn.
The course also continued to be funded for 36 weeks despite being shortened to 18 weeks.
Mrs Grant resigned her position at Awanuiarangi and was subsequently referred to the Serious Fraud Office.
The investigations at Te Whare Wananga O Awanuiarangi and WITT highlighted issues including:
* Students "completing" an 18-week course in just one day;
* Event volunteers unwittingly being enrolled in courses and receiving qualifications;
* Mass enrolments of students whose identity and domestic status could not be substantiated;
* Teaching hours falling well short of funded levels;
* Tutors being enrolled as students in courses they were teaching.
The story so far
Sept 6: The New Zealand Herald reveals the Warriors league club has been drawn into an investigation into the funding of a Maori tourism course.
Oct 2: The investigation confirms Warriors club members gained certificates after doing one day of an 18-week course. Course provider Te Whare Wananga o Awanuiarangi returns $5.9 million in course funding. Donna Grant, Awanuiarangi's director of performing arts, resigns from the wananga and is referred to the Serious Fraud Office and within days is replaced on the Warriors board.
Oct 11: A second investigation uncovers similar overpayments at the Western Institute of Technology in New Plymouth relating to Maori performing arts courses, resulting in a $3.7 million repayment.
Nov 21: Tertiary Education, Skills and Employment Minister Steven Joyce confirms 12 more "targeted" reviews are planned, including Taratahi Agricultural Training Centre (TATC).
Jan 15: Dr Donovan Wearing, chief executive of TATC, dies suddenly.
Sept 7: Taratahi agrees to repay $7.5 million. SFO confirms it is investigating.
By Steve Deane of the New Zealand Herald
