Huge student association fraud
The Dom Post reports:
A police investigation has begun after more than $750,000 was drained from Whitireia Polytechnic students’ association funds over a year. …
Angry students – who learned their funds had dwindled to just $6000 – demanded the executive step down during the tense meeting. After heated discussions, one committee member broke down in tears as she told students to “have faith” in the new executive, which, except for one member, was elected after the misappropriation took place.
Fulltime students must have $135 deducted automatically from their student loans to pay subs for the Whitireia Independent Students Association. There are about 6000 students at the polytech, half of whom are fulltime.
Yet not a single one of them can quit. They can’t say I do not wish to belong to an association that is so lacking in basic financial controls, that $750,000 gets wasted or stolen.
VSM will attract different people to student associations. Not so much those who want to spend money, but those who want to provide a good enough service that students will want to join. Don’t think that the high level of fraud in student associations is a coincidence. It is a consequence of compulsory membership.
August 14th, 2010 at 12:11 pm
The whole scam brings new meaning to the word “whanau”.
These crooks were not very clever, but for a while they managed to live the high life at taxpayer’s expense (I wonder if the moko on the accused woman’s face was also paid by us.)
August 14th, 2010 at 12:12 pm
Stolen twice – theft through complusion by the executive and then stolen again.
Can’t say I surprised.
August 14th, 2010 at 12:14 pm
Legalized theft. Only difference this time is that some evil hori got the money instead of the Tax man.
Will the hori go to jail. Unlikely and he doesn’t care anyway.
August 14th, 2010 at 12:18 pm
predictable response is predictable.
August 14th, 2010 at 12:18 pm
Wow, sounds like student associations are where left wing politicians learn the ropes.
Same principle after all. Compulsory theft and then ‘redistributed’ without any account.
August 14th, 2010 at 12:35 pm
Not meaning to trivialise issues surrounding VSM David, but if you think VSM will create a greater culture of accountability in student associations, you would be quite wrong.
August 14th, 2010 at 12:39 pm
What does this have to do with VSM? These individuals would have committed this fraud regardless of whether they were Voluntary or not. This is a disgrace, but it is not representative of anything other than failed processes and the corrupt behaviour of the individuals involved.
The actions of these individuals bears no reflection on the majority of student representatives working in student associations.
[DPF: If the association was voluntary, they may not have even been attracted to stand for office. Getting control of hundreds of thousands of dollars of annual income, which is guaranteed, is a lure for some people.]
August 14th, 2010 at 12:41 pm
I see their training to become future Labour MPs is going well.
August 14th, 2010 at 12:45 pm
I agree with you on VSM David, but in this case students do seem to be able to relatively easily opt out and get their money back (within 20 days) as you can see at the bottom of this link (under the “Membership Optional” heading) http://www.whitireia.ac.nz/student_services/Pages/WhitireiaIndependentStudents%E2%80%99Association.aspx
I also think the reasons for this fraud are a bit more complex than you suggest and wrote about it today on my blog http://www.ed.co.nz/2010/08/14/students-assn-money-disappears/
August 14th, 2010 at 12:58 pm
If an organisation doesn’t have a good track record of financial accountability, it struggles to attract new members. If Student Associations have voluntary membership, then those that allow the executive and employees to get away with murder will find themselves replaced by new associations pretty quickly.
August 14th, 2010 at 1:04 pm
Dave,
So, we have a disclosed $75k of theft, last books were 07 showing 200k revenue and 200k assets, lets assume 08 09 10 are similar revenue and that there are 0 assets left as the entitled protectors of the land have nicked them all.
That’s 75 + 200 + (say half of the revenue nicked per annum = 4 *100) = approx. 675k so a figure of 750k nicked seems plausible.
August 14th, 2010 at 1:05 pm
just because roger kerr is a delusional prick doesn’t mean that all of the business community are retarded. ergo….
August 14th, 2010 at 1:20 pm
Isn’t this all so predictable. Socialists just love playing with other peoples money.
They are very bright, but severely risk averse. Actually normal work shy.
They just love the baubles that their demented minds bring them to believe that they are fully entitled to.
Just like the theft of the booze from the Journalists do, that the US Embassy so kindly donated.
Common Thieves.
August 14th, 2010 at 1:21 pm
@somewhatthoughtful – The difference is that bad businesses fail. Bad student associations live on.
August 14th, 2010 at 1:37 pm
“If an organisation doesn’t have a good track record of financial accountability, it struggles to attract new members. If Student Associations have voluntary membership, then those that allow the executive and employees to get away with murder will find themselves replaced by new associations pretty quickly.”
Not true, there is little competition to represent the interests of students at tertiary levels. It involves complex relationships with the institutions, sadly. Also, as stated, student associations are in the position of metering out their own accountability in many cases. You can see where the problems arise…
August 14th, 2010 at 1:59 pm
Don’t think that the high level of fraud in student associations is a coincidence. It is a consequence of compulsory membership.
Don’t think the high levels of unemployment is a coincidence. It is a consequence of compulsory taxation.
August 14th, 2010 at 2:21 pm
A friend of mine would say (and I know it sounds racist), that Maori just do not know how to manage money. There is a truth to that somewhere.
August 14th, 2010 at 2:22 pm
“Don’t think the high levels of unemployment is a coincidence. It is a consequence of compulsory taxation.”
No it is actually a direct function of bad management, and in all cases.
Taxation is but a side issue.
August 14th, 2010 at 2:23 pm
Some future labour ministerial credit card spenders at work here no doubt
August 14th, 2010 at 2:26 pm
Don’t think the high levels of unemployment is a coincidence. It is a consequence of compulsory taxation.
No it is actually a direct function of bad management and in all cases. Taxation is but a side issue.
The high level of fraud in one or two student associations is not a consequence of compulsory student membership. It is a direct function of bad management, and in all cases
The membership type of students associations is but a side issue.
August 14th, 2010 at 2:42 pm
Socialist are thieving robbing bastards. Fact.
August 14th, 2010 at 2:46 pm
“Some future labour ministerial credit card spenders at work here no doubt”
and some future finance company directors as well.
August 14th, 2010 at 3:00 pm
dave, I’ll agree that this is poor management. But poor management in an organisation people are forced to join is a much larger problem than poor management in an organisation that people voluntarily join.
August 14th, 2010 at 3:17 pm
PaulL – evidence ?
August 14th, 2010 at 3:33 pm
This is not the first time substantial fraud has been committed against a Polytechnic Students’ Association.
Last year a woman at the Christchurch Polytech was imprisoned for stealing $175,000:
http://www.verify.co.nz/news-theftnz.php#theftnz20090619
August 14th, 2010 at 3:54 pm
dave: what do you mean by evidence? It’s an opinion. Do I need to prove that it’s my opinion?
August 14th, 2010 at 4:32 pm
DPF:
“A police investigation has begun after more than $750,000 was drained from Whitireia Polytechnic students’ association funds over a year.”
Next you’ll be asking for the abolition of capitalism in NZ. After all, corporate fraud was near $100 million for the last 12 months. That must be “cataclismic” fraud on your scale.
August 14th, 2010 at 4:34 pm
The bro stole from the bro, SO SAD
August 14th, 2010 at 4:43 pm
what do you mean by evidence? It’s an opinion. Do I need to prove that it’s my opinion?
Don’t state it as fact, then we`ll know it is your opinion.IIn my opinion, your opinion is misinformed.
August 14th, 2010 at 5:02 pm
@expat, it’s hard to see where all the money has been spent. Overall, I think the Dom Post has added up all of the expenditure over the last few years and has said that has been “drained”. What’s most likely is that the majority of that money went on business as usual stuff, leaving a still outrageous amount to be taken. I think the Dom Post just wanted a stronger intro than the facts supported. If there were more examples of alleged fraud, I’m sure they would have been listed.
FYI in your example below, you counted four years instead of 2.5 (08, 09 and until they got exposed in 2010) and I think the people alleged to take the money didn’t come in until 09 too.
“So, we have a disclosed $75k of theft, last books were 07 showing 200k revenue and 200k assets, lets assume 08 09 10 are similar revenue and that there are 0 assets left as the entitled protectors of the land have nicked them all. That’s 75 + 200 + (say half of the revenue nicked per annum = 4 *100) = approx. 675k so a figure of 750k nicked seems plausible.”
August 14th, 2010 at 5:30 pm
I am really disappointed, they are $50k short of the Labour Party. What kind of example do they hope to set for other lefties if they cannot match their masters. Success, deferred.
August 14th, 2010 at 6:48 pm
Somebody stealing money again? Oh dear how sad, but it is ok. Troughers deserve it coz the taxpayer pays.
You fucking maggots
August 14th, 2010 at 7:18 pm
It would be very interesting to see if there are any good quotes from the involved parties about the requirement to keep student union membership compulsory.
August 14th, 2010 at 7:21 pm
Rich Prick
Perhaps they stole some of the money to fund the ‘axe the tax’ road trip.
August 14th, 2010 at 7:24 pm
Dave.
6000 students at $135 per student is $810000 in one year
There is $6000 left.
What has happened to the $804000? Even if we take your assessment of $75000, then what about the remaining $729000?
What about the “Missing Assets” as indicated by the accountant?
August 14th, 2010 at 7:26 pm
Can someone here describe the link between compulsory membership (which I think is sucky and undemocratic…) and the theft/loss of money? Does compulsory membership cause these losses? I guess I just see greedy, thieving *cough* leaders with their hands in the till, and the membership mechanism doesn’t seem to be a driver.
August 14th, 2010 at 7:31 pm
Burt,
Sorry to burst your bubble, but it seems Ryder was in favour of VSM.
http://www.actoncampus.org.nz/blog?page=2
August 14th, 2010 at 7:39 pm
Many moons ago I was forced to join a Union. I was threatened with dismissal but my boss paid the fee.
The only time I saw a Union Official was when yearly fees were due and the cogsucker promised to increase my wages.
The reason I refused to join the Union was my wages were well above Union Rates. My boss paid or I leave. Simple.
Here I am some years later and in the same job without any Union WANKERS to decide my fate. Yes back in the 70′s the Unions sucked the worker dry for the Party
Oh yeah, the Union guy had a car, I walked to work
August 14th, 2010 at 8:37 pm
Yeah – you’re wrong on this, DPF.
Membership Optional:
As a student you automatically become a Member of the Students Association. This convenient measure means you as a student can access services and amenities immediately from your first day on Campus. However, should you not want to be a member and require a full refund, you must opt out within 20 days from the commencement of your Course of Study. This can be arranged at the Administration Office.
Maybe that was the problem, DPF? Without mandatory membership there were too few students able to watch over the association to ensure money was well spent
August 14th, 2010 at 10:29 pm
Let me give you an ‘insiders’ view on all this to help some of you become better informed about the corrupt management of this association over the past year. I have a very informed view of what has been going on and that should suffice for now as to the credibility of the following.
To dave (759), dave gueren and expat(3380) let me clarify for you. the president was illegally appointed last year in may. the audit report that the dom post just got a hold of late yesterday(hence their story was just the start of many articles to come to uncover the full story, they have to make money with stories and don’t reveal everything in one article.and obviously they just learnt about all this yesterday so the articles that were released were very last minute.) was just for the period of may to dec 09. there is literally $750,000 misappropriated in this timeframe of 6months alone, The financial reports sent to the charities commission is very misleading. She was also still president this year from jan to july and their is another couple hundred thousand that has been misappropriated this year alone. There is definitely evidence and over the next couple weeks and months the stories will flow through national media so u know the full picture. from may 09 to july 2010 there has definitely and surely been in excess of $1million unaccounted for. The media has not yet released info on the drug ring and gang affiliations of the offenders too. The accommodation they stay in, that is suppose to be for students as temporary housing until they find accommodation but now it is public knowledge in the porirua area after asking students and locals that it is a ‘tinny house’ and students and other members of public have gone there for that reason. the histories of them have also not been released yet. The polytechnic collects student association fees and holds on the money and drip feeds money into the Student association quarterly. the money they drip fed in the past was only equivalent to $250k approx annually(so $840k – 250k means that the polytechnic had alot of student association money that they held on to over the past years, and i was informed they kept it in an account and earned interest of it for the polytech and not the students). because this was happening the polytech was taken to the high court in 2009 by the student association and there was a settlement that the polytech had to pay out the money that they had been holding. By my calculations even if it was just five years that they had withheld payments of (840k-250k=)600k approx then that means that there would have been a settlement of at least close to $3million at least. where did that settlement money go? no one knows yet except for the ones who spent it. also the media didn’t report that when the auditor released his report yesterday he said on the dictaphone that the figures he is reporting on is only the figures given to him by the old president. he said he couldn’t confirm wether these figures were accurate because all of the receipts and bank records and expenditures had been supposedly stolen and the president would not give him access to the bank account records. the police will be looking at the bank accounts over the next couple months the forensic accountants to get exact figures and to determine where the money was cyphoned and misappropriated. We do know that all of the money was mismanaged under the management of the 2 people that were on the paper today who are coincidentally closely related and also they were the 2 signatories on the account. anyway this story has only just started to unfold publicly and i am sure in the coming week you will learn more about it. I seriously could write the requirements of a masters thesis on this as this is how complex and enormous the fraud is.
i just hope that proper policies and procedures are put in place and adhered to so that students don’t get abused like this. students struggle financially for the most part and it is stuff like this that makes it harder financially for students.
August 14th, 2010 at 11:08 pm
Oh Pleeease.
Compulsorry is jus sooooooooo Socialist. It’s like worker freedom,but with a capture net.
Utter bullshit from the Champagne Intellectual Socialists, who appear to be actively Gay, warped, air kissing lovies, and capable of fraud on a truly industrial scale.
They actually despise their core constituents, and keep them dependent and oppressed, and use their educational privilege to patronise, ridicule, and subject for amusement. You are all so very sure to go the Hell. Bastards
August 14th, 2010 at 11:11 pm
Further to Graeme’s comment, as I earlier noted, even if you miss opting out with a full refund within 20 days, it is still possible to opt out under current legislation after the 20 day period. That is a little more factual than a claim that “Yet not a single one of them can quit”.
August 14th, 2010 at 11:27 pm
There are a couple of comments from one person over at my blog on this referring to this thread – I assume it’s a new commenter and DPF hasn’t had time to approve them, Lots of new info that informs some of the discussions above and blows some of my earlier assumptions.
http://www.ed.co.nz/2010/08/14/students-assn-money-disappears/
August 15th, 2010 at 12:57 am
Dave, some might say you’re shamelessly plugging your own blog on DPF’s blog. Some others might say that this is not a very nice thing to do.
August 15th, 2010 at 12:59 am
Well, burt if it had been a “max the tax” bus that could be a theory. But isn’t there just somthing delisously ironic about theft by complusion being trumped by theft by fraud? Filthy lefties just can’t keep their hands out of the till. Doubt there will be any retropective legislation to save these fuckers, unlike the other fuckers who still owe us $800k.
August 15th, 2010 at 5:46 am
“unlike the other fuckers who still owe us $800k.”
What about the millions overpaid to UNDP compared to Australia, that all but guaranteed the plum job for the ‘Not out of the closet yet’,
Dear Leader is now living in unadulterated luxury in SoHo area. Wonder how much money, that thing, has passed over to good causes personally?
That was just peachy, and was kept secret for so long. Thieving Bitch with an effette former flatmate. Now sharing accommodation with a lady who would probably prop tighthead better than me. Regular lady visitors as well.
August 15th, 2010 at 8:35 am
@Rufus, sorry about that. I only make a link when it’s directly relevant. First time I’d covered the same issue in a little more depth than DPF. Second time, someone in my comments made direct references to two other commenters here, so thought it was only fair to mention it, and they also added a lot more info. I link back to Kiwiblog and other blogs whenever there’s anything relevant to my area, so hold up my own end.
August 15th, 2010 at 11:21 am
Dave (the other one) you simply CANNOT equate compulsory unionism with taxation. Stop doing it, you always use that comparison. We have a problem with student unions taking and taking – and then stealing. It’s happening all over NZ.
VSM will attract people interested in keeping people within their student unions, not those who get hot flushes when being allowed to play with large amounts of students cash. Our trade unions are doing quite well under voluntary membership, I’m sure their comrades in the CTU, EPMU and Labour can advise them on how to keep them running.
This is yet another case that should help nail the coffin down hard on the last bastion of compulsory unionism in NZ.
August 15th, 2010 at 10:58 pm
Guy, it would come as no surprise to me that the UNDP is corrupt, look at who is running “that” show now. Probably installed to “manage” it so no embarrassment is leaked.
August 16th, 2010 at 8:40 pm
Well RP, Helen *did* pay them an unusually large amount of taxpayers dollars in “contributions” during the election periods of 2008 and 2005. More than most other countries by percentages. Why has this never become public knowledge?