Rich Katherine: Maori Television Service Bill — In Committee 
Rich Katherine: Maori Television Service Bill — In Committee 
[Volume:607;Page:5028] 
KATHERINE RICH (NZ National) 
: 
 This is a very important part because it sets out the code of conduct for directors. It also sets out the appointment process and the process that directors have to follow when they resign. Had this legislation been in place this part would have been a very important part and it would have been used many times with the game of musical chairs that has been played by the directors of Maori television. They have lost so many directors in such a short space of time that I have lost count. 
While we are talking about the conduct of directors I think it is worthwhile spending a bit of time talking about the code of conduct in general at Maori Television. Maori Television has spent quite a bit of time developing its code of conduct. I am reading from the code. It states that Maori Television recognises that the conduct and effectiveness of its organisation are highly dependent upon the quality of the people who comprise it. One would say that that would be correct. The code goes on to say that Maori Television should demonstrate high standards of integrity in all phases of its business. The next points made in the Maori Television code of conduct are that it must not intentionally cause Maori Television’s books and records to be incorrect in any way; must not create or participate in the creation of any records that are intended to conceal anything that is improper; must volunteer knowledge of any untruthful and inaccurate statements or records whether intentionally or unintentionally made; and must bring to the attention of its supervisors transactions that do not seem to serve a legitimate or commercial purpose. 
The writer of this document finishes by asking the people at Maori Television to read the code of conduct with the great care it deserves because Maori television and their reputations depend on it. Can members guess who wrote it? John Davy wrote this code of conduct which is dated 4 March 2002. In it he says that they must all demonstrate high standards of integrity in all phases. That document was downloaded from the Maori Television website. Funnily enough it is not there any more. One of the other great pieces of creative writing that I downloaded from the Maori Television website was John Davy’s CV. I would like to quote from that: “Canadian born”—that is about the only truthful bit of his CV—“John Davy brings over 25 years of international business finance and entertainment experience to Maori Television ... hired as CEO/CFO for an emerging company in the field of virtual internet and consumer e-commerce.’’ That sounds pretty glam. His CV states that he was former chief executive officer of an Asia-Pacific investment advisory company had lots of offshore portfolios and was involved in network marketing. According to his CV he was a telecommunications specialist worked with joint-venture companies had an MBA from Denver University and is a certified financial management accountant. But get this—John Davy “has over 35 years experience in the entertainment and sports industry.” and apparently is a composer a singer and a songwriter. Now we all know that that was an exercise in creative writing and bore no relation to his skills. 
But I get back to the bill. I am interested in the code of conduct of the directors because I do not think that some of the directors understood what their obligations were. One of the provisions in this clause is about the method that directors must use to explain conflicts of interest. A director must disclose to the rest of the board whether he has a financial interest in or could benefit in any way from some of the transactions as a result of the Maori Television business. There were some dodgy dealings going on on that board. There were some contracts that almost went ahead—there was the Sony contract that nearly went ahead and the lease for the Viaduct Basin that was nearly signed. Quite clearly some directors did not know what “conflict of interest” meant or what the difference was between having a governance role and a management role. In terms of setting out quite clearly what directors are supposed to do I think that that is a pretty important step but of course there has not been much continuity on the Maori Television board. Directors have left with alarming regularity so there has been very little consistent management of the board and very little consistency in decision making. Now we are in the position where the chairman has become the chief executive.