PHOTO: Kāinga Ora
📢 New Zealand’s housing agency Kāinga Ora is in the spotlight again – and this time, it’s not about building homes. Former Chief Executive Andrew McKenzie walked away with a staggering $1.066 million after leaving his role, raising serious questions about executive payouts in the public sector.
🔍 The Breakdown of the Mega Payout
📌 McKenzie’s annual salary for the 2023/24 financial year was $731,000 – already making him one of the highest-paid public officials in New Zealand.
📌 On top of that, he received a special payment of $365,500, categorized as compensation for notice and redundancy.
📌 The total payout of $1.066 million has sparked backlash amid growing concerns about Kāinga Ora’s financial performance.
Andrew McKenzie left the top job at Kāinga Ora last year with both a redundancy payment and a payment in lieu of notice.
🛑 Why Was McKenzie Given a Golden Handshake?
Kāinga Ora’s Chair Simon Moutter defended the payout, stating that McKenzie’s role had been significantly reduced due to government restructuring.
💬 “This decision aligned with his employment contract and was necessary given the changes in Kāinga Ora’s operations,” Moutter explained.
Moutter also praised McKenzie’s tenure, highlighting: ✅ The delivery of 4,000 new homes in the past year. ✅ The establishment of Kāinga Ora as a key housing agency. ✅ His leadership in major housing projects across New Zealand.
🏠 Government’s Response: “We Need Better Performance”
The government’s new directive aims to refocus Kāinga Ora on its core role as a landlord rather than an expansive development agency.
🚨 Prime Minister Christopher Luxon emphasized the need for urgent reforms, stating: 💬 “We must see improved performance at Kāinga Ora. The agency’s financial model is not sustainable.”
💥 This follows an independent review led by Sir Bill English, which found that Kāinga Ora was underperforming and financially unsustainable without major reforms.
📉 What’s Next for Kāinga Ora?
🏗️ A board overhaul is already underway, with a new leadership team expected to take charge.
📊 Increased scrutiny on spending and executive salaries is likely, given the public outcry over McKenzie’s payout.
🏠 The agency must now prove it can efficiently manage its resources while still delivering much-needed public housing.
SOURCE: NZHERALD