Former Te Pūkenga chief executive paid out close to $200,000

Wednesday, 14 June 2023

The former boss of embattled mega polytech Te Pūkenga – who spent weeks on “special leave” while drawing a $13,000-a-week salary – was paid out close to $200,000 after his sudden resignation last year.

Stephen Town’s resignation – the circumstances of which remain unclear – was announced in mid-August in 2022.

Stephen Town was stood down from his $688,000-a-year role as chief executive of the organisation, which runs the country’s 16 polytechs, but continued to be paid a total of $65,000.

His absence was first reported on in early July. Shortly after, Te Pūkenga was facing a possible deficit of $110 million. Town’s resignation – the circumstances of which remain unclear – was announced in mid-August.

The Post can reveal a further $195,075 was paid to Town as part of a “mediated confidential settlement agreement”.

National’s tertiary education spokesperson Penny Simmonds says the figure was a “massive payout”. (File photo)

The “massive payout” only came to light after two Official Information requests and intervention from the Chief Ombudsman, National’s tertiary education spokesperson Penny Simmonds said.

Te Pūkenga was formed three years ago, after the merger of the country's 16 Institutes of Technology and Polytechnics (ITP) and nine Industry Training Organisations (ITO), but has been beset with financial problems and high profile senior resignations. It has about 240,000 students and more than 10,000 staff.

Simmonds, the former Southern Institute of Technology chief executive before her move into politics, said ongoing mismanagement had been a “hallmark” since Te Pūkenga’s inception, with the board and senior managers “spending money without any concrete improvements to the polytechnic sector”.

Te Pūkenga chairman Murray Strong confirmed the sum. The organisation considered settlement the confidential and “sought to honour the privacy of its former employee”, he said. He declined to make further comment.

Education Minister Jan Tinetti said as it was an “internal employment matter, it was an operational issue for Te Pūkenga to address.

Simmonds said the payout was a “slap in the face for the hundreds of polytechnic staff” whose jobs were being reviewed as part of an operating restructure.

Staff consultation as part of the organisational design and change programme began this week, covering five of eight business groups.

Current chief executive Peter Winder says the restructure marks a “significant milestone” for Te Pūkenga.

New chief executive Peter Winder said the consultation marked a “significant milestone” for the entity.

“As the country's largest tertiary education and training provider, we are critical to addressing national skills shortages and supporting thriving regions and communities. Getting this right is essential.”

Te Pūkenga chief executive Stephen Town, talking to Stuff reporter Lee Kenny, refuses to talk about why he is on 'special leave'. (Call took place on August 12, 2022. Audio first published on August 14, 2022).

Details of the proposal are being released later this week and Winder said they would be able to provide further details after all kaimahi (staff) have been informed.

A five-week consultation period will follow, with final decisions expected in August.

It follows a highly critical report from the Office of the Auditor-General (OAG) which said the “current plans suggest the Te Pūkenga operating model will not be fully in place until sometime between 2027 and 2033”.

The OAG is also concerned that “critical parts of the Te Pūkenga transformation programme have not progressed enough”.

“Specifically, it is concerned about the operating model, the financial sustainability plan, and the performance framework,” said a recently published report by the Education and Workforce Committee.