Race Relations Commissioner Meng Foon resigns over failure to declare $2m conflict of interest

Meng Foon has resigned as Race Relations Commissioner for a conflict of interest involving $2 million of Government funding for housing, but says he made an “error of judgement” and that officials knew about the money.

Foon, who has been in the role since August 2019, is the director of a company which received payments worth $2m during his term. He failed to adequately declare this, Associate Justice Minister Deborah Russell in a statement, despite being involved in a report on emergency housing.

The Human Rights Commission Board reported his failure to adequately declare his interests, and found he had failed in his duties under the Act. As a result, she sought advice from the Ministry of Justice.

She then wrote Foon inviting him to respond to the board’s report and set out that deliberations could result in him being removed from office.

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“I held a subsequent meeting with Meng Foon where he explained his actions. 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,” she said,

“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,” she said.

However, Foon said he declared that his company was an emergency housing provider, before his appointment in 2019. His company got about $2.3m over five years from 2018 to 2023, he said.

“I strongly refute the statement I didn’t declare my interest in emergency housing to the M of Justice and Human Rights Commission before I started my role,” he said.

“I have been transparent with the commission. There are no policy [sic] to declare financial figures,” he said.

He said he didn’t declare a perceived conflict of interest at the housing enquiry board meeting because he didn’t think he needed to because he didn’t get any money from the commissioner. His accountant declared the financials with the chief commissioner when asked, and all transactions were on commercial, legal terms, he added.

National Party justice spokesperson Paul Goldsmith said it was a sign the Labour Government was 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.”

ACT Party leader David Seymour said he was “not surprised, but a little bit saddened”.

“I think he’s been ineffective and way out of line through his whole tenure and sad to see him resign on a matter of interest rather than his poor performance.”