Kerre Woodham: New Zealand's conflict of interest problem

What I found more outrageous on the internet yesterday was yet another example of this country's propensity for doling out jobs for the boys and indeed the girls. Every political party does it, every government does it, rewards the party faithful and their generous donors and backers with cushy sinecures. Grafter-in-chief would have to be Trevor Mallard's posting to Dublin – although would it? Because there are plenty of other opportunities to point the finger. Look at Simon Bridges, the ex-National Party leader was appointed as the new chair of the New Zealand Transport Agency, Waka Kotahi, in March 24.

There are many, many examples of political cronyism. And in the latest one, a KiwiRail director has quit the board two years early after only a couple of months in the role. That's not the news. What is news is that he was appointed to the board at all given his conflict of interest. Scott O'Donnell is a big player in trucking and freight. And given some of the 10 companies he's involved with supply services to KiwiRail, what on earth was he doing being made a director of KiwiRail? The conflicts required Treasury to put a management plan in place.

The conflict of interest mitigation plan contained seven measures to manage conflicts, including recusing himself from board meeting discussions where there was a conflict of interest. It was simply unsustainable. He was being paid to do a job that he simply could not do because of the conflicts of interest. He ended up leaving meetings early and missing agenda items and, you know, became apparent that this wasn't going to work. He'll be stepping down next week and thanked for his service. But he should never ever have been appointed in the first place.

So not only are there existing conflicts of interest, he's one of four directors of HW Richardson's Transport Tapunui, which donated $20,000 to New Zealand First in July 2024. The company's also involved in a project that recently received a government regional infrastructure loan, Shane Jones slush fund of $8 million. And then he's appointed by Winston to the board of KiwiRail. It's just another example and it's so common that it barely registered. I mean, I have to give credit to Radio New Zealand who were following this all the way through and BusinessDesk pointing it out going, No, no, no, this isn't good, this isn't right, this doesn't work.

Do we have so few people in this country of five million who can do governance jobs and chief executive jobs that we have to accept there'll only be one or two degrees of separation, if that? That there is always going to be a conflict? If you think of the five million of us, how many of us could do a chief executive job or be on a board, take a director's role on a board?

Look at the yawning vacancies that we have for our major companies, with a new one with Fonterra now. I mean, Miles Hurrell could walk into about 20 jobs in this country right now, either in sports governance or in business. There are so few people able to do the job. Do we have to accept that there is going to be a conflict of interest in just about every single appointment made?

Do more of us have to put up our hands and do the directors' courses so that you can find maybe somebody somewhere who doesn't, hasn't made a donation or hasn't worked or hasn't been a politician who can then do the job? Or are we just simply too small?

How we haven't appeared on the dirt list of corruption is beyond me. It shows either a really, really principled closed doors approach to business in this country, being able to separate your different business interests and focus on them solely and leave everything at the door when you go in, or we just haven't uncovered it yet. I'd really love to see an end of the appointments of jobs for the girls and the boys, but then who would do the job when you look at the vacancies that exist right now.

See omnystudio.com/listener for privacy information.