Yachting NZ receives Sport NZ backing while under investigation by integrity watchdog

Sailors are bewildered Yachting NZ's leadership has been given an endorsement by Sport NZ while the sport remains under investigation by a new integrity watchdog.

Sport NZ last week awarded the beleaguered national body a 'governance mark' - described as "highest acknowledgement of its kind in the country".

According to a Yachting NZ press release, the scheme is an independent evaluation led by the government sports agency, which assesses, among other factors, a board's "integrity and accountability".

Yachting NZ first received a governance mark in 2021. Last week's announcement heralded the renewal of the accreditation, following an "extensive" year-long evaluation process.

"I feel absolutely sick reading this," one sailor told RNZ. "It's one thing to be gaslit by YNZ, now it feels like Sport New Zealand are joining in."

The recognition comes just months after the Sport Integrity Commission launched an investigation into Yachting NZ following a raft of cultural and conduct complaints.

The allegations range from that of inconsistent and unsafe selection processes to claims of serious misconduct among both athletes and staff.

In announcing its decision to investigate in December 2024, the commission notified complainants it was satisfied that there "appears to be a threat to integrity, and that opening an investigation is in the public interest".

Several members of the sailing community contacted RNZ to question how Yachting NZ could receive the seal of approval from one government sports agency while under investigation by another.

One sailor described the move by Sport NZ as "insulting" and potentially harmful to athletes and other complainants.

Another said they believed if the allegations were serious enough to meet the statutory threshold to open an investigation, it "should be enough to give Sport NZ pause".

But Sport NZ chief executive Raelene Castle said the governance mark programme is entirely separate from the Sport Integrity Commission's processes.

She said the scheme assessed whether an organisation's "policies, processes and systems" were in line with best practice, and stressed a clear line needs to be drawn between Yachting NZ's governance and the operational side of the sport.

"On the surface it probably looks like the timing isn't ideal, but actually the timing of the awarding of the governance mark means that we have confidence that whatever the findings of the commission's investigation, the board is in the best possible position to implement any change that's required," she said.

Asked if she was concerned that athletes may feel that Sport NZ has disregarded their concerns by endorsing the Yachting NZ board, Castle responded:

"I think if you don't really understand the governance mark, that might be your perspective. But once you understand it is about systems, processes and policies... then it should bring the athletes confidence, that whatever the findings out of the commission will be acted on appropriately and they changes they seek will be made."

Castle added that as Te Kahu Raunui was set up to be entirely independent of Sport NZ, she did not have any knowledge of the "tone or type of complaints" that were currently before the watchdog body.

However, Yachting NZ's own evaluation of the past Olympic cycle revealed serious issues within its high performance set-up.

The review, led by former New Zealand Olympic Committee boss Kereyn Smith, made several adverse findings about the leadership of the sport, including cultural issues, a perceived lack of transparency, and "discrepancies between stated values and actual behaviours within Yachting New Zealand".

Smith also reported there was a perception that the sport's leadership "operates within a traditional paradigm, which may not fully embrace modern, inclusive or innovative approaches".

Castle argued the willingness of the Yachting NZ board to commission an external review was an example of strong leadership.

"We would say that is some really good governance taking place," Castle said.

Yachting NZ declined to comment for this story, but in a statement on its website board chair Greg Knowles said the governance mark "provides assurance that Yachting New Zealand is on the right path, allowing us to confidently move forward".

Another complainant to the commission, Bruce Trotter, said Sport NZ and its subsidiary High Performance Sport NZ needed to look at the role it had played in allowing issues at Yachting NZ to fester.

"I think Sport NZ hasn't just failed to notice the problem - it now looks like they're excusing it," Trotter said.

"I challenge Sport NZ to look properly into the issues plaguing YNZ and stand by their endorsement."

Catherine Ordway, an international expert on sports governance, law and ethics, said regulatory bodies need to take a cautious approach to assessing the health of an organisation on policies and documents alone.

"Depending on where the issue is that [Yachting NZ] is being investigated for, two things can be true. Because these are all allegations at this point and there hasn't been a finding, you can see how an objective, high level review can say 'well everything is all in order'," says Ordway, an associate professor at the University of Canberra.

"Many of these governance review assessments are actually good tools, but you do need to also look at what is happening in the real world and the environment more broadly, rather than just whether they have the right policies."

Ordway pointed to an extreme example whereby an international sports integrity think tank - Action for Good Governance in International Sports (AGGIS) - ranked Fifa second in its list of top performing governing bodies in 2014.

Less than a year later, the FBI famously carried out a series of raids at a five-star hotel in Zurich on the eve of Fifa's congress, charging 14 high ranking officials with corruption.

The AGGIS review had looked at markers like Fifa's policies, communication and gender equity, Ordway said.

"And bizarrely, Fifa came out on top as one of the best performing international sports organisations then, lo and behold a bunch of Fifa executives were arrested and AGGIS ended up with egg on their face," Ordway said.

"And that's the challenge Sport NZ has here - people may lose confidence in their processes and their leadership if all these complaints are upheld [against Yachting NZ]."

A spokesperson for the Sport Integrity Commission declined to comment.

The investigation into Yachting NZ is the first high-profile test of the new agency's muscle.