Derek Handley receives $107k in compensation after being dumped as chief technology officer

Friday, 14 September 2018

Prime Minister Jacinda Ardern removes Clare Curran from cabinet.

Dumped chief technology officer candidate Derek Handley has been paid out more than $100,000 in compensation by the Government, Digital Services Minister Megan Woods has confirmed.

Woods said the Government had agreed to pay Handley compensation totalling $107,500 after deciding to stop the recruitment process for the country's first national chief technology officer and 'rethinking the role'.

Woods issued the statement after Handley said the Government had reneged on a commitment to give him the job and paid him three months' salary, and costs, as compensation.

Handley said he had decided not to keep the money, and would instead donate it towards a fund to support ideas, programmes and grants to tackle 'digital inequality'.

* New CTO must have full support of industry

* Clare Curran on personal leave after horror Question Time**

Derek Handley says he will donate a Government pay-out towards a fund to tackle digital inequality.

Former communications minister Clare Curran resigned first from Cabinet and then as minister after it emerged she met Handley in February to discuss the job and then 'omitted' to document the meeting in response to a parliamentary question.

Handley said he was 'offered and accepted' the job – which had been billed as offering a salary of up to $400,000 plus a $100,000 travel budget – a month ago.

'Earlier this week I was deeply disappointed to learn that the Government will no longer follow through with their commitment and will not be making that appointment at this time.'

Handley said that 'given the unnecessary and sustained lack of transparency around the process and political pressure to rethink their approach', the Government's decision to stop the process had been understandable.

'As the Government has now terminated my contract I have been offered a settlement payment as per the contract. The amount equates to three months pay plus reimbursement of my costs,' he said.

National's state services spokesman Nick Smith says the Government should apologise to taxpayers and to Derek Handley. Nick Smith, Nelson MP at his Nelson electorate office.

State Service Minister Chris Hipkins had refused to comment on whether Handley had been offered or accepted the job, or whether he might be paid compensation, when asked by Stuff earlier this week.

Graeme Muller, chief executive of industry body NZTech, said Handley 'might or might not have been the perfect choice' for the job.

'But let's not make it about Derek. The Government has right royally messed up'.

NZTech still believed a stronger national focus on technology was critical for New Zealand's success. But his opinion now was that the Government was perhaps 'not the best place to do this', he said.

National Party state services spokesperson Nick Smith said the appointment of a CTO had been a 'shambles from the beginning' and the Government should apologise to taxpayers and to Handley.

'The CTO is the flagship of the Government's IT policy and was budgeted to cost the taxpayer over $500,000 per year. Now we're paying Derek Handley around $100,000 for a job he never even started.'

Woods said the Government had put a stop on the CTO process and would rethink the objectives of the role.

'What's clear is that we need to step back … and see how it fits in with the other work being done in the digital transformation space,' she said.

'What we know is that the CTO role in its current form has significant overlaps with the Research, Science and Innovation portfolio and the Broadcasting, Communications and Digital Media portfolio, as well as other roles like the government chief digital officer.'

Woods said the Government was 'honouring' the agreement it had with Handley through the pay-out.

'This decision in no way reflects on him as a candidate and the State Services Commission review shows that the process was suitably robust,' she said.

'Derek showed energy and passion for the development of a digital strategy for New Zealand.'

A number of people in the technology community questioned Handley's suitability for the role after it emerged he was the Government's preferred candidate.

But Handley said he had 'again made it clear this week that I was and remain fully committed to taking up the role under that pressure and in the face of those who were not supportive, because of how much I believe in the challenge and opportunity for our country that it represents'.

'The last few weeks have been a distressing time for my family and I who returned to Auckland last weekend in time to take up this position from having lived for over 10 years in New York.'

Handley acknowledged he was 'not steeped in the local IT community' but believed his 'broad background' could have been of unique service to New Zealand.

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