Resignation letters from KiwiRail board members have been disclosed following Ombudsman intervention.
It reveals Government ministers announced the resignation of former chairman David McLean two days earlier than he had wanted, the NZ Herald reports.
In a June 19 letter to Finance Minister Nicola Willis and then-Minister for State-Owned Enterprises Paul Goldsmith, McLean confirmed his decision to step down.
“I was intending to advise the KiwiRail CEO and board of my decision at the board meetings next week, so would appreciate it if it could be embargoed until Tuesday 25 June. I will advise Treasury at that time also,” he wrote.
McLean’s resignation came shortly after Willis voiced concerns about KiwiRail’s spending on consultants, particularly its engagement with global advisory firm McKinsey & Company. Despite McLean’s request to delay the announcement, Willis and Goldsmith publicised his resignation on June 23.
His departure coincided with the grounding of the Interislander Aratere ferry near Picton, an incident that occurred just after McLean had informed ministers of his plans to leave.
Initially, KiwiRail refused to release the resignation letters to the Herald, citing privacy concerns.
However, following a complaint from the Herald to the Ombudsman — arguing that the public had a right to transparency given KiwiRail’s reliance on taxpayer funds —the state-owned enterprise disclosed the documents before the Ombudsman’s inquiry was finalised.
The New Zealand Taxpayers’ Union says it shows some organisations are becoming “too comfortable with secrecy”.
“State-owned enterprises are now too comfortable burying the lead when they should be held accountable to its shareholders – the New Zealand taxpayer” Taxpayers’ Union spokesman Sam Warren says.
“We’re seeing an ever-growing reluctance from a number of organisations to comply with requests for Official Information – despite a clear legislative requirement to do so.
“Hiding behind veils of bureaucracy and baseless excuses of ‘commercial sensitivity’ has allowed SOEs to effectively game the OIA process designed to improve transparency.
“It’s well and good the Ombudsman acted on this, but discouraging to know that this was even required. So much more needs to be done in this space to improve accountability,” Warren says.
