Whitireia student losses climb to $1m

Loretta Ryder

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Almost $250,000 paid by Whitireia Polytechnic to its troubled students' association this year has vanished – taking the total drained from bank accounts to $1 million.

A police investigation was begun after it was revealed last week that about $750,000 was bled from the funds of the independent student association (Wisa) in 2009.

Whitireia chief executive Don Campbell learned in June that there may have been problems with expenditure and refused to release funds – collected from student subs – until an audit was completed.

But after talks with former president Loretta Ryder, he agreed to advance $244,977 in good faith. That money is missing – with just $6000 remaining in the association's bank accounts.

The association also owes $139,000, including a $26,000 phone bill. Tax and GST returns have not been completed and could leave the association open to prosecution and fines.

The polytechnic is still holding about $70,000 in student levies.

In angry scenes at a meeting yesterday, students demanded that the current executive, elected in March and April, stand down. Naavin Mohandass, a member of the committee, quit. He previously demanded the association declare itself bankrupt.

The $135 compulsory subs are collected by the polytechnic on behalf of the association. It must provide an annual audit to the polytech – but alarm bells rang when a 2009 audit was not received by June.

Mr Campbell said: "In June, when I got some indication that there might be some issue with the audit, I wrote to Loretta Ryder, saying you need to provide audited accounts and we will be suspending payments until that happens."

However, he agreed money would be released after assurances from Ms Ryder. But the audit was still not received by June 30.

Ms Ryder stepped down in July and new president Tim Manu took over. An audit report was finally received last Friday and revealed the missing money.

Mr Campbell said: "The audit was about 2009, it's not about 2010. To keep them running in 2010 in good faith, we've been paying the levies that had been collected. But that's now stopped. Currently we are holding around $70,000 which we are not paying over until we've got some greater certainty about outcomes."

He said that court action initiated last year by the association over levies had further complicated the matter. "They had taken us to court because they didn't believe we had paid them enough, which was nonsense.

"It was a futile case. It never got to court because common sense prevailed and we went to mediation and reached agreement."

Mr Manu confirmed the association no longer had the money from this year's levies. But he praised Mr Campbell for releasing the money.

"Don Campbell has been very supportive by giving the old president the benefit of the doubt and hoping she would keep her promise. I think he's the hero.

"He wanted to ensure the association was able to continue operating. He was looking out for the best interests of students.

"The advancement was requested on the basis Loretta had made the promise that the audit would be received at a certain time."

Mr Campbell is keen to stress the polytechnic has no influence over the association's affairs. "It is important to note that Wisa, as with all student associations, is independent from and separate to the institution whose students it represents.

"We have no say over how they manage their business. However, there are large sums of money involved and accountability back to students can be tenuous and fraught depending on the approach taken by executives of the association.

"We will be looking at a range of options in conjunction with Wisa to strengthen their accountability and provide whatever assistance we can to improve the way they manage student funds."

Ms Ryder said yesterday that she wanted police to investigate so she could clear her name.

"Let the police investigate and then people can judge me. I have nothing to hide. The auditor has got it so wrong.

"There are so many documents that come across my desk. By the time they get to me they just need my signature. If I had to proof-read them all I would be in the office till midnight."