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The Parnell House for which the University of Auckland paid $ 5 million to Vice Chancellor Dawn Freshwater.
The University of Auckland did not follow its own rules when it bought a $ 5 million home for its vice chancellor to live in, the Auditor General found.
The university bought the house in November of last year. But the public sector watchdog raised the alarm when RNZ reported the purchase in January.
Throughout the investigation, Auditor General John Ryan found that the university was not completely transparent and had “failed to demonstrate a justifiable business purpose” to purchase the four-bedroom house in Parnell.
“Although universities have their own role and level of independence, they are held to the same expectations about how they spend public money as all public organizations,” Ryan said in his report, released Wednesday.
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Since the university is partially funded by taxpayers, Ryan said he hoped the university would consider each situation more carefully to make sure it could justify the expense and was reasonably in a position to do so.
The home, which has four bedrooms, three bathrooms and a spa and outdoor pool, was one of 15 homes viewed by university officials.
It was purchased for Vice Chancellor Dawn Freshwater to live in and host events.
A report owned by the university specified that the home had to be within walking distance of the university and have easy access to “bays, cafes and restaurants,” according to the report.
Supplied
Vice Chancellor of the University of Auckland Dawn Freshwater
It also specified that the home should have home office space, good off-street parking and bike storage, low-maintenance grounds, and privacy.
While he was expected to pay rent during his time at home, the university had reduced it to 52 percent of market value.
Instead of the current rate of $ 2500- $ 3000, Freshwater would pay $ 1100 per week, based on a lease given to RNZ.
Ryan said the purchase was “difficult to accept” given that it was only expected to host 14 events in two years. He said it did not justify the money spent.
In defense of the purchase, university officials told the auditor general that the house was necessary to help recruit Freshwater for the position and that it was not expected to pay Auckland’s high market rate.
Two other New Zealand universities have residencies for their presidents: Massey at Palmerston North and the University of Otago.
University of Auckland spokeswoman Lisa Finucane said the university accepted “there were shortcomings in the university’s handling of the purchasing process.”
In response, it had engaged independent consultants to provide opinions on its policies and processes related to sensitive expenses.
Changes the university makes in response to those revisions to its policies and processes will be made available to the public, Finucane said.
“The University of Auckland takes its responsibilities with regard to the use of public resources very seriously.”
