RNZ's unlawful overdraft was signed off by the board
RNZ's board has admitted to an unlawful $5 million overdraft that breached the Crown Entities Act. The broadcaster is currently dealing with a $12 million budget blowout and internal financial reporting failures.
Why it matters
This highlights significant governance and financial oversight failures within a major public broadcaster, raising questions about accountability and regulatory compliance.
RNZ's board says it was assured by its then-chief financial officer that it didn't need approval for a $5 million overdraft.
On Monday, the public broadcaster revealed a shock $12m budget blowout, after a litany of financial blunders that included the overdraft that breached the Crown Entities Act.
By law, RNZ required ministerial sign-off to set up the overdraft.
RNZ chief financial officer Hilary Parker resigned unexpectedly in early October.
Board chair Brent Impey said a director did ask Parker in writing whether ministerial approval was required.
The query came after the board signed off on the overdraft, but before it was formally entered into.
"The assurance given at that time was that RNZ did not require approval from either the minister of finance or the shareholding ministers to establish the facility," Impey said.
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