RNZ board says it was assured overdraft did not need ministerial approval
RNZ's board says it was assured by its then chief financial officer that a $5 million overdraft did not need ministerial approval. The overdraft breached the Crown Entities Act, the law that governs state-owned bodies including RNZ, which required ministerial sign-off before it was set up. The auditor, EY, identified the breach during RNZ's annual audit and highlighted it in the annual report. (RNZ)
An overdraft is a bank arrangement that lets an organisation borrow up to an agreed limit. The RNZ board approved a temporary $5 million facility on 9 June 2026. RNZ said it was set up as a safety net in case a land sale was delayed, so that significant one-off costs could be met. The overdraft was never used.
The board says the assurance it received was that RNZ did not need approval from the minister of finance or from the shareholding ministers, the ministers who hold RNZ's shares for the Crown, to establish the facility. Board chair Brent Impey said a director asked Hilary Parker, RNZ's chief financial officer, in writing whether ministerial approval was required. That question came after the board had signed off on the overdraft but before it was formally entered into. Parker resigned unexpectedly in early October.
RNZ said it last received ministerial borrowing approval in 2006, for up to $3.5 million. It also said no internal or external legal advice was sought before the overdraft was entered into.
Separately, RNZ revealed a $12 million budget blowout on Monday. Chief executive Paul Thompson said internal reports had given an inaccurate picture of the organisation's finances. As a result, he said, the scale of the loss only became clear in October.
