Race Relations Commissioner Meng Foon is resigning from the role after it came to light he failed to declare a range of interests.
That includes that a company he directed received more than $2 million for the provision of emergency housing accommodation. He didn't adequately declare this, the Government said.
"The Human Rights Commission conducted an inquiry and produced a report on emergency housing which Meng Foon had been involved in deliberations for, while never adequately declaring his interest," said associate Minister of Justice Deborah Russell in a statement on Friday afternoon.
It follows a probe by the Human Rights Commission (HRC) into Foon's donations to political parties that raised questions about his ability to be politically neutral. Foon told Newshub in April that he believed he could be independent.
Newshub texted Foon on Friday afternoon asking if he had resigned.
He replied: "No I haven't resigned."
Foon has since told Newshub that he had informed the Prime Minister that he would formally resign on June 18, "but the news has beaten me".
He said he resigned "for my error of judgement on political donations and our company is an emergency housing provider".
He claims to have declared that his company was an emergency housing provider in 2019 prior to his appointment as the Race Relations Commissioner.
"I refute strongly that I didn't declare my interest of emergency housing to the HRC and the [Ministry of Justice]. As they received my interest before I was appointed and before I took up my role as RRC."
Foon claims to have been "transparent" with the commission, but didn't declare his perceived conflict at a housing inquiry board meeting "as I didn't think I needed to". However, in hindsight, he admits this was a "mistake".
Russell said that the Chief Human Rights Commissioner Paul Hunt wrote to her on May 12 saying Foon had failed to declare a range of interests.
"A company directed by Meng Foon received income from Government payments during his term which he had failed to adequately declare, including over $2 million for the provision of accommodation including emergency housing," Russell said.
Over the past year, the Human Rights Commission has been conducting an inquiry into emergency housing that Foon has been involved in. He didn't adequately declare his interests during this time.
"Off the back of that and a report from the Human Rights Commission Board into his failure to adequately declare these interests which found that he breached his duties under the Act, I sought advice from the Ministry of Justice," Russell said.
On May 30, Russell said she wrote to Foon inviting him to respond to the report. She "set out that my deliberations could result in him being removed from office".
"I held a subsequent meeting with Meng Foon where he explained his actions," she said.
"I have been considering the matter and taking further advice. My preliminary view was his actions were serious enough to warrant removal.
"Had the process been completed it is probable I would have determined his actions represented a serious breach of the Crown Entities Act and I would have taken the next steps to recommend to the Governor-General to remove him from his office."
"It is critical that all people appointed to public roles comply with their statutory duties. Meng Foon had multiple opportunities to adequately declare these interests and did not do so.
"While he has now chosen to resign I think it's important the public is aware of the circumstances in which he has made that decision," Russell said.
Hunt said in a statement on Friday that Foon was a "man of the people" who had made "an unfortunate mistake".
"Apart from its staff and stakeholders, the Commission's greatest asset is its independence from government – its impartiality, its political-party neutrality. Meng's resignation is an important and courageous act to protect that independence," Hunt said.
Foon had apologised to the HRC board, the statement said.
Other members of the commission said they would "miss" Foon, that he would leave a "profound legacy", "shone a spotlight on racism" and "modelled how to listen and build bridges between communities".
David Seymour, the leader of the ACT Party which has called for the HRC to be abolished, reacted to Foon's resignation: "Good".
"Meng Foon's fundamental failing was that he was unable to put aside his personal politics and criticise racism from the left. The Human Rights Commission has become a left-wing activist organisation and it should be abolished."
National's justice spokesperson Paul Goldsmith tweeted: "Whether it is Ministers or their appointees, Labour is failing to manage conflicts of interest, meaning New Zealanders are losing trust and confidence in government".
"All information related to the conflict must be disclosed in order to maintain the confidence of the public," he said.
In April, it emerged he had donated to political party candidates from Labour and National while holding the Race Relations Commissioner role. That included Labour's Kiri Allan and National's East Coast electorate.
As the Race Relations Commissioner, Foon is meant to be independent of the Government.
Foon spoke to Newshub at the time, stressing that he could be independent.
"Regardless of which role, it has been a family tradition to support left and right parties in our family. From the time of my parents to now."
The Human Rights Commission said at the time it took neutrality "extremely seriously" and would assess reports of Foon's donations.
The Justice Minister recommends to the Governor-General who to appoint as Human Rights Commissioners.
The Justice Minister is Allan, who Foon had donated to ahead of the 2020 election. Russell has been dealing with the Foon issue as Associate Justice Minister.
Electoral return forms show "M and Y Foon" donated $1500 to Allan in June 2020, ahead of that year's election. An address for these donors is associated with a company that Foon is a director of.
The return also shows Triple Eight Investments provided $9185.04 in rent subsidies to Allan between August and September 2020. According to the Companies Register, Foon was a director of the now-deregistered company.
Speaking to Newshub in April, Foon said donations had been made to other candidates, including National's 2020 East Coast candidate Tania Tapsell.
Asked if it was appropriate to donate money considering his role, Foon said: "It didn't cross my mind. It's just a thing that we do automatically."
The National Party confirmed to Newshub at the time that it did receive a $1000 donation from Foon in June 2020. This is below the threshold required for disclosure on the electoral return.
In the weeks since, Newshub has repeatedly asked the Human Rights Commission for an update on Foon's role, but it has provided none.
