In July it was announced by Rail Minister Winston Peters that Scott O'Donnell was appointed to the KiwiRail board. Photo: Otago Daily Times / Luisa Girao
KiwiRail's board chair says a director of the rail company with a number of links to transport businesses is affecting the governing body's capability and efficiency.
In July it was announced by Rail Minister Winston Peters that Scott O'Donnell was appointed to the KiwiRail board.
There were several measures put in place to manage his conflicts of interests related to the 10 companies he is involved in - many of them in transport.
Treasury put a plan together to manage these interests, which featured seven measures.
It included eliminating access to sensitive information, the vetting of board agendas and papers before they are sent to O'Donnell, the requirement for O'Donnell to declare if any agenda items pose a conflict before board meetings, and recusal from discussions.
As reported in September by RNZ he was also one of the four directors of Dynes Transport Tapanui, which donated $20,000 to NZ First in July 2024.
Peters said at the time that the donation from Dyne's Transport played no part in O'Donnell's appointment to the board and that he was aware of the extent of the conflicts of interest.
Despite the restrictions on what O'Donnell could be involved in, he would be effective in his role, Peters said.
Treasury did not advise against the appointment of O'Donnell, he said.
During a KiwiRail briefing on Tuesday during Parliament's scrutiny week, KiwiRail board chair Suzanne Tindal said the conflict management that had been put in place had resulted in O'Donnell having to recuse himself from "a number of items on the board agenda".
"We are due to report how we are managing that conflict management to the two shareholding ministers early in 2026.
"It will become quite evident when we do the amount of time that director has to be recused."
Tindal was asked by the ACT Party's Simon Court if it had impact on the board's capability and efficiency.
"It does have an effect is the answer to that."
She said "more importantly" that director needed to consider whether they can discharge their duties as required in accordance with the companies act.
When approached by RNZ KiwiRail would not say how many board meeting agenda items he had missed because of his conflicts.
"That information is being compiled as part of the regular reporting to Shareholding Ministers on the conflict management plan, which is due in the first few months of next year."
Scott O'Donnell has not responded to RNZ's request for comment.
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