RNZ's $5 million overdraft broke the law, board chair says

Radio New Zealand (RNZ) entered into a $5 million overdraft without the ministerial authority required under the law, and the chair of its board has said the arrangement broke the law. The original RNZ report.

RNZ is New Zealand's independent public service multimedia organisation. It is a Crown entity, a publicly owned body established under the Radio New Zealand Act 1995. It broadcasts RNZ National, RNZ Concert and an AM network that relays Parliamentary proceedings.

RNZ's board approved the temporary overdraft facility on 9 June 2026. Sections 160 and 162 of the Crown Entities Act 2004 were breached because the facility was entered into without authority from the Minister for Media and Communications and the Minister of Finance.

The overdraft was never used and was undrawn as at 30 June 2026. RNZ said it was set up as a safety net in case one of its land sales was delayed while it managed significant one-off costs.

The audit firm EY identified the breach during RNZ's annual audit. It was highlighted in the annual report, in Note 12 on page 32.

Former chief financial officer Hilary Parker initiated setting up the overdraft, and RNZ's executive then took it to the board. No internal or external legal advice was sought before RNZ entered into the arrangement.

RNZ last received ministerial approval to borrow money in 2006, when it was approved to borrow up to $3.5 million.

Board chair Brent Impey said on Checkpoint, RNZ's radio current affairs programme, that RNZ had broken the law over the Westpac loan facility.

RNZ has also disclosed a $12 million budget blowout.