Mon, 12 Oct 2009 6:05p.m.
By Duncan Garner
More than three months after being ‘cleared’ by broadcasting funding agency NZ on Air, Melissa Lee and her company that makes TVNZ’s Asia Downunder remain under investigation for the alleged misuse of public funds.
A whistleblower has sent 3 News a copy of NZ on Air’s concerns – which it sent to Lee in June – the day before her Mt Albert by-election.
Labour says Broadcasting Minister Jonathan Coleman is also impacted. Acting Labour Party leader Annette King says given he was Lee’s campaign manager and is the minister in charge of NZ on Air, Coleman needs to clear up its allegations tonight that he has covered this up.
When Lee was campaigning for the by-election in May, Campbell Live was first to raise serious questions about the alleged misuse of taxpayers money in her role as head of Asia Vision Limited – the company that produces Asia Downunder.
The following week, NZ on Air cleared her in a statement that was widely reported.
But buried near the end of the statement, NZ on Air said:
“Some minor administrative improvements, unrelated to this investigation, require further attention as is often revealed by production audits.”
3 News has obtained a ‘please explain’ letter, sent from NZ on Air to Lee after she was cleared.
It shows behind the scenes the broadcasting agency was still turning over Lee’s company and talking to former staff.
The letter shows NZ on Air found major concerns over how taxpayers money had been used – none of which were made public in the heat of the by-election battle.
In the letter, dated June 12 – the day before the by-election – NZ on Air’s Chief Financial Officer wrote to Lee saying:
“It seems to us that since 2004 Asia Vision Limited has applied unspent contingency to increasing the production company overhead to the maximum amount. This action breaches our funding contract in two ways.”
What NZ on Air was questioning was why $100,000 of unspent money set aside for contingency had not been returned to NZ on Air.
Lee told 3 News today the investigation into her company is continuing.
“We didn’t have enough money so we transferred our profit margin across to cover contingencies,” she said, in an effort to explain the problem.
“We then transferred the money back at the end of the year. Technically all unspent contingency is meant to be returned to NZ on Air.
“It’s an accounting error in my view, I’m waiting for the outcome.”
But Labour says tonight’s revelations also raise serious questions about Coleman’s role.
“The letter is dated the 12th of June – one day before the by-election,” says Ms King.
“He must have known about it. It has never been disclosed, no one has ever known that it even existed.”
Coleman was in charge of Lee’s Mt Albert campaign, and as Broadcasting Minister he is responsible for NZ on Air too.
Labour thinks Coleman has questions to answer about what he knew and why this was kept from the public during the by-election.
“Unless he fronts up and tells the public what he knows, he could be accused of the cover up,” says Ms King.
Coleman told 3 News he only knew about the Lee issue on August 18 when he met officials, and never covered anything up.
3 News