9 Aug 2023

Ministry's $40k farewell for departing chief executive earns rebuke from Commissioner

4:48 pm on 9 August 2023
Public Service commissioner Peter Hughes speaks to the Royal Commission of Inquiry into Abuse in Care.

Public Service Commissioner Peter Hughes Photo: Supplied / Royal Commission

The Public Service Commissioner is criticising the Ministry of Pacific Peoples' nearly $40,000 farewell for its departing chief executive in October last year.

He says it is a case of an agency "getting it wrong".

Commissioner Peter Hughes reviewed the ministry's spending after it sent him a copy of an OIA response showing the estimated costs for the farewell and a fono.

He found the $39,262.22-plus GST farewell, which included $7555 in gifts the chief executive returned upon finding out the expenses, did not meet the requirement of being "moderate or conservative".

The costs included more than $3000 on photography, flowers and ceremonial drummers, and more than $7000 for travel and accommodation expenses for 12 guests.

Hughes said the farewell had inadequate oversight of expenditure, which was inconsistent with the ministry's hospitality, gifts and entertainment policy and business expenditure policy.

He said there was also no criteria or framework in the gifts policy for the reimbursement of gifts for staff, no evidence of a budget for the farewell, and limited monitoring.

A third event - a $12,478.17-plus GST welcome pōwhiri for the chief executive's incoming replacement - was also inconsistent with the ministry's policies with again no budget set, and no upfront discussion on funding for travel or accommodation for guests.

"Taken together, the Ministry for Pacific Peoples' expenditure on the farewell and the welcome was an inappropriate use of taxpayers' money," Hughes said.

He said the departing chief executive, Secretary for Pacific Peoples Leauanae Laulu Mac Leauanae, had not been involved in the planning.

"Mr Leauanae owned his part. When he became aware of the matter, he immediately repaid the money spent on gifts in full and returned all cultural gifts to MPP. He also repaid the money spent on travel for his family and a guest who did not have a formal role in the welcome. That is appropriate and I thank Mr Leauanae for putting the matter right at the first opportunity," Hughes said.

Hughes found the $72,157.01-plus GST costs of the two-day all-staff fono was consistent with MPP's expenditure policies, however.

"There was a clear business purpose of reconnecting the organisation, reviewing the Lalanga Fou engagement and discussions on future priority deliverables," he wrote.

"Non-Wellington attendees required travel and accommodation. This was the first all-staff fono since October 2020. To reduce future travel costs, the MPP leadership team decided the fono would replace any future in-person business group planning days scheduled for the remainder of 2022," he wrote.

The total cost of the pōwhiri event was also shared with the Ministry of Culture and Heritage, whose expenditure included $2000 on catering and $3550 on external cultural advice, but Hughes found this spending was justifiable, moderate and conservative.

"The purpose of this advice was to ensure tikanga Māori and Samoan ritual protocols could be observed. This was the first time a hybrid pōwhiri was proposed in recognition of, and respect for, tangata whenua as well as the new incoming Secretary's genealogy, heritage and traditions."