“This Board has shown over the last few weeks it is severely dysfunctional, riven by suspicion and distrust of its Chairman and other members.”

“The suggestion all this can somehow now be quietly swept aside and life carry on as though nothing as happened simply lacks credibility.”

“The Government’s inaction has left the Board looking silly, and a time bomb just waiting to explode once more,” Mr Dunne says.

Mr Dunne says it is clear the reason Dr Armstrong has been retained is because of the Prime Minister’s support.

“Friendship obviously rates higher than performance.”

“It is also clear that NZ Post is being held ransom by Dr Armstrong’s perceived value to the Government on the TVNZ Board.”

“Forcing him off the NZ Post Board would have led to inevitable pressure for the same thing to happen to his role with TVNZ, so NZ Post pays that price,” Mr Dunne says.

Mr Dunne says it is difficult to comprehend how the Government’s decision to retain a dysfunctional Board will do anything to reinstate flagging confidence in NZ Post’s commercial operations like Transend, or in its ability to establish a viable alternative local banking service.

“New Zealand Post has been left in the worst of all worlds, thanks to the Government’s inaction,” Mr Dunne says.

ENDS