The Tertiary Education Commission has told politicians that Te Wananga o Aotearoa acted in good faith in appointing a new council member.
The Maori Affairs Select Committee is considering information to determine whether it should investigate the way the tertiary provider got rid of chief executive Bentham Ohia.
Mr Ohia asked for an inquiry as a result of concerns including how the wananga appointed a person to its governing council - Te Mana Whakahaere.
He says the council appointed rather than elected a new council member, who he says influenced the non-renewal of his executive contract.
The commission's chief executive, Tim Fowler, agrees it was wrong that the new member was appointed, but couldn't say what influence they had in the decision-making.
He says the new member was appointed on bad legal advice, and the council has since re-elected someone to replace that person.
The Maori Affairs Select Committee says more information is needed to determine how robust the commission's monitoring systems are.