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MTS welcomes SSC, Ernst & Young reports

Media statement
For immediate release
20 May 2002

MTS welcomes State Services Commission, Ernst & Young reports

The Chairman of the Maori Television Service, Derek Fox, today welcomed reports from accounting firm Ernst & Young and the State Services Commission dealing with the performance of former CEO John Davy and executive recruitment firm Millenium People.

The Ernst & Young report, also known as report number one, confirms that MTS was not exposed to any serious legal or financial risks from its employment of former CEO John Davy.

“Ernst & Young were not able to identify any significant financial risks incurred by the board as a result of employing Mr Davy,” said Mr Fox. “Nor did the firm express any serious concerns about the board’s legal and financial position.

“The report did make some recommendations on how the board could tighten up on some procedures but these are technical in nature and did not have a material effect on the issue being investigated.”

Mr Fox also welcomed the report of the State Services Commission, prepared for the Government.

“This report examines the manner in which Millenium People was engaged and the use of the firm within the public service.

“It raises very few issues for MTS. It makes a passing reference to best practice but indicates that a more rigorous process would not necessarily have disclosed inadequacies.”

Mr Fox said the second report by Ernst & Young, which is a formal legal position, on the appointment process for the CEO has been presented to the Board.

“This report, among other things, discusses options available to the board arising from the use of Millenium People to recruit executives. One of these options has been actioned,” he said.

Ends

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