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The chief government of the state housing company and developer Kāinga Ora is leaving the enterprise in October, and 5 board administrators ended their tenure on Sunday, workers discovered on Monday.
The announcement of Andrew McKenzie’s exit comes only a month after a brand new chair, former Spark boss Simon Moutter, was parachuted into the company after a extremely vital report led by Sir Invoice English.
McKenzie, who has led the company and its predecessor Housing New Zealand, since September 2016, is without doubt one of the highest paid within the public sector. His remuneration package deal in 2022/23 was listed as $721,000, in response to an NZ Herald survey.
Employees had been advised of his exit, and that of 5 administrators, by Moutter in a observe on Monday morning, seen by Newsroom.
His departure follows the previous chair, the ex Labour MP and unionist Vui Mark Gosche, who stood apart in February.
When the Authorities launched the English evaluation of Kāinga Ora final month it stated a detailed “and credible” monetary working plan for the housing company can be anticipated from its new chair and board by November.
English’s evaluation faulted Kāinga Ora for its borrowing and spending, tenancy and upkeep providers, development offers and relationships with builders and various social housing suppliers, and the board for governing with inadequate monetary info. His evaluation really helpful eradicating the housing funding perform to the overseeing Ministry of Housing and City Improvement (HUD) and splitting social housing into at the least 5 Crown corporations across the nation.
An appendix to that report included nameless remark from stakeholders vital of the board, McKenzie and the company’s dealings with minister within the earlier, Labour authorities.
The evaluation’s findings painted a board asleep on the wheel as billions in public cash was deployed with out enough data of its worth for cash or impression on the Authorities’s books. It additionally painted an image of KO’s executives main the board by the nostril and dealing instantly with the Minister of Housing.
The board responded with an in depth critique of the general report, citing quite a few incorrect assumptions and conclusions and questioning the inclusion of the nameless feedback about its CEO and executives.
McKenzie has lengthy been a forthright government, courting again to the times he was chief monetary officer for Auckland Metropolis Council the place he was not averse to pushing again strongly at political or media criticisms.
He led Housing NZ earlier than its 2017/18 conversion into Kāinga Ora, so has been on the helm of public housing for a substantial tenure. In 2018, he apologised for Housing NZ’s dealing with of the meth contamination scare that led to some tenants being evicted.
Moutter introduced McKenzie’s departure to workers on Monday, noting it was after discussions in regards to the function being down-scaled within the reforms forward for Kāinga Ora.
“I’ve been discussing the implications of this with our Chief Govt, Andrew McKenzie, and concluded that the modifications are materials to his function, decreasing its scale and accountabilities considerably, and that was not what he signed-up for when he agreed with the Board to increase his contract final yr.
“As a consequence, Andrew and I’ve agreed that he’ll go away the organisation on 31 October 2024. In the course of the subsequent 4 months, Andrew will full some essential change processes as Chief Govt after which transfer throughout to help me and the Board with making ready the brand new Plan that should be delivered to the Authorities in November. I’ll replace you on new management preparations as selections are made about these over the subsequent few weeks.
“We’ll extra totally acknowledge and thank Andrew for his contribution nearer to his ending date, however for now the Board and I do need to recognise the big contribution he has made in his eight years as Chief Govt in addition to the calm {and professional} management he’s offering at the moment of great change. Whereas Andrew shall be missed, he’ll go away the organisation properly arrange to reply to the modifications forward.”
Moutter additionally advised workers 5 of the present board administrators had their last day on Sunday June 30 and new board members can be introduced by the Authorities this week.
“I’d prefer to acknowledge Philippa Howden-Chapman, Sir John Hansen, Campbell Roberts, Robin Hapi and Nicole Anderson for his or her service and the numerous contribution they’ve every made to Kāinga Ora throughout their time on the Board.”
That would go away the deputy chair, John Duncan, who acted as chair on the time of the English report’s launch, and one different director John Bridgman, in place.
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