RNZ's unlawful overdraft was signed off by the board
RNZ has admitted to breaching the Crown Entities Act by securing a $5 million overdraft without the required ministerial approval. The board signed off on the loan as a financial safety net, though it was never utilized.
Why it matters
This highlights significant governance and financial oversight failures within a major public broadcaster already facing a $12 million budget deficit.
<p>RNZ has confirmed its request for a $5m overdraft, which breached the Crown Entities Act, was signed off by the board.</p> <p><b>By Mary Argue and Craig McCulloch of </b><a href="https://www.rnz.co.nz/news/business/2550132/rnz-s-unlawful-overdraft-was-signed-off-by-the-board" target="_blank"><b>RNZ</b></a><b></b></p> <p>The public broadcaster on Monday revealed a shock <a href="https://www.1news.co.nz/2026/11/09/rnz-to-cut-58-jobs-after-poor-and-unsustainable-118m-loss/" target="_blank">$12 million budget blowout</a>, after a litany of financial blunders.</p> <p>CEO Paul Thompson took responsibility for the result and said internal reports gave an inaccurate picture of the finances, meaning the scale of the loss only became clear in October.</p> <p>While carrying out the broadcaster's annual audit, EY identified a breach of the Crown Entities Act - emphasising it in RNZ's annual report.</p> <p>"We draw your attention to Note 12 on page 32 about the Group not complying with sections 160 and 162 of the Crown Entities Act 2004, in that the Group entered into a financing arrangement without the authority of the Minister for Media and Communications and…
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