7. Hon BILL ENGLISH (National—Clutha-Southland) Link to this
to the Minister of Education
Has the Ministry of Education investigated allegations that a Canterbury school’s property consultant has taken kickbacks from contractors in exchange for ensuring they receive school contracts; if not, why not?
Hon STEVE MAHAREY (Minister of Education) Link to this
The Ministry of Education is, of course, deeply concerned by allegations made in the Christchurch Press about School Support Ltd and one of the company’s employees. The ministry has taken the appropriate action, and referred this matter to the police on Friday, 17 February. They have also written to the managing director of School Support Ltd asking for his comments about the allegations.
Is the Minister aware that Mainland Contracting, which secured $3 million worth of school building contracts through Mr Stuart Boyle, has built a garage at Mr Boyle’s home and painted his house, and that it appears that Mr Boyle has not paid for these services?
Hon STEVE MAHAREY Link to this
I am aware of those allegations. That is why I am pleased that the matter has been referred to the police.
Darien FentonWhat processes does the Ministry of Education have in place to ensure schools get value for money from expenditure on property?
Hon STEVE MAHAREY Link to this
There are two key processes to ensure schools get value for money. Firstly, property projects have a standardised budget, which provides some assurance to schools that the tenders they receive represent value for money. Secondly, guidelines for schools require them to run a process that is contestable and transparent. They must get three or more tenders if the project is greater than $15,000, and the tender process must be well documented and clear to ensure fairness for those tendering for the work.
Is the Minister aware that Calder Contracting Ltd, Ashphalt Contracting Ltd, Christchurch Electrical Ltd, and Hopewell Construction Ltd have also secured significant school maintenance through Stuart Boyle and they have also done significant work on Mr Boyle’s property, including a tennis court and a swimming pool, which Mr Boyle appears also not to have paid for?
Hon STEVE MAHAREY Link to this
Those are the allegations contained in press reports and that is why the matter is in front of the police.
How can the public have any confidence in the Ministry of Education when it has been aware of these allegations of rigged quotes, kickbacks, bribery, and secret commissions, which undermine public confidence in the tendering of hundreds of millions of dollars of public money?
Hon STEVE MAHAREY Link to this
The ministry was made aware of an unsubstantiated rumour about this company, I understand, last year. The ministry discussed this with School Support at the time. As there was no evidence and no direct allegation made, the ministry decided that it would not take the matter further at that time.
So is the Minister now telling us that the public have to rely on journalists and the Opposition to dig this material up because his ministry staff regards it as unsubstantiated rumour unless they trip over it and it knocks them on the head and then they will decide to investigate?
Hon STEVE MAHAREY Link to this
I know that the Ministry of Education staff do not trip over and get knocked on the head, as has been pointed out by the member opposite, before they notice anything. They run a very good process in relation to tendering. In this case, of course, the school did not lose anything. What we are talking about are allegations between contractors and this person. That is why the matter is in front of the police. The ministry has taken the appropriate action.