Orr's resignation mismanagement transparency asserted by Willis

Finance Minister Nicola Willis has found herself at the centre of a political storm, following the resignation of Adrian Orr as Governor of the Reserve Bank. Labour deputy Carmel Sepuloni has criticised Willis for not asking more questions about Orr's departure, and for what she perceives as a lack of public transparency from the central bank.

The back-and-forth between Willis and Sepuloni follows the resignation of Reserve Bank chair Neil Quigley. Quigley initially described Orr's exit as a "personal decision", but it was later revealed that it stemmed from a disagreement with the board around government funding.

The Reserve Bank has since released documents revealing that Orr quit due to a funding dispute with the bank's board and the Government. The documents include a "Letter of Concern" sent to Orr by the Reserve Bank board, represented by its chair Neil Quigley and non-executive members, on February 27, 2025. The letter raised various concerns about Orr's conduct and requested his response before he agreed to resign in early March 2025.

Despite the controversy, Willis insists she has been as "upfront and transparent" as possible about Orr's resignation. She has publicly and privately insisted on more information about the matter to be shared with New Zealanders. However, she has left it to the Reserve Bank to communicate about the matter, stating that she has not been satisfied with their public accountability and transparency.

Willis has also expressed unhappiness with the Reserve Bank's communication about the dispute and subsequent resignation. She mounted a personal defence on RNZ, stating that she has no reason to hide any details because the former Reserve Bank governor's reputation is affected, not hers.

It was previously mentioned that Willis had not been privy to all the details of the employment dispute, including the board's letter of complaint. It was not stated that Willis could have been kept updated if she wanted to be, but this fact is an extension of the earlier mentioned fact.

The Ombudsman required the bank to release a timeline showing the board had also presented Orr with a letter of concerns before his resignation, but agreed to withdraw it when he quit.

Sepuloni stated that Willis' plea of ignorance is not acceptable regarding the Reserve Bank's turmoil. She called on Willis to take responsibility for the shifting stories and lack of public transparency from the central bank. Willis, however, has been "very conscious" of the bank's independence and there being no suggestion of political interference.

The Prime Minister has stated that it is not unusual for high-profile Reserve Bank appointees to resign ahead of their terms ending. The article does not provide new information about the resignation of Reserve Bank chair Neil Quigley or the Ombudsman's requirement for the bank to release a timeline. The article also does not provide new information about Willis's statements about the bank's independence and there being no suggestion of political interference.