Staffing conflict of interest issues investigated in 2005
The conflict of interest matter in the contract Mai Malaulau had as the Establishment Director of the Pacific Division was the subject of an independent external investigation undertaken by Mr Peter Chemis of Buddle Findlay in 2005.
In essence, the report found there was no conflict of interest in Ms Malaulau's contract. Specifically:
At all relevant times, Mr Tavita had no interest in Pacific Edge International Ltd;
The relationships between Mr Tavita, Ms Malaulau and others involved were fully disclosed at all relevant times;
Ms Malaulau had the right experience and qualifications for the work;
Her pay rate was within the range typically charged within the public service for work of this type.
However, the report also found that because of the various relationships and the potential for a perceived conflict of interest, it would have been more prudent and appropriate had Mr Tavita played no role, or a lesser role, in the negotiations between the Department and Ms Malaulau. Contrary to claims made in the media, Mr Tavita was not reprimanded for this.
Mr Chemis otherwise found nothing improper or untoward during the course of his investigation.
Ms Malaulau was originally contracted for three months as the Establishment Director to set up the Pacific Division. Ms Malaulau's contract as Director was extended while the Department tried to recruit a permanent replacement. She was eventually appointed to her current position of Director after the Department's recruitment efforts failed to attract any other suitably qualified person to fill the position. The $517,000 reported in the media for the contract was paid to her for the two years she spent as a contractor in the role, not solely during the establishment stage.