The Whanganui Events Trust - organisers of the New Zealand Masters Games, worth millions of dollars to the local economy - is several thousands of dollars in debt and can't pay its bills, claims an angry trustee.
Ray Stevens, a former outspoken district councillor, says he warned other trustees six month's ago a train wreck was heading its way.
Whanganui hosted the games in February and is due to host them again in 2019.
"We have debts of several thousands of dollars and we can't pay our debts. Six month's ago it was a countdown to disaster, nothing was stacking up financially," Mr Stevens said.
"I raised issues about our vulnerability in December. I warned in several emails that insolvency was looming but nothing was done. We had no new income, no new contractual agreements and an increasing level of debt. And now we're insolvent."
Trust chairman Mark Stoneman confirmed to the Chronicle on Sunday the trust had gone into "hibernation" and had let its staff go, including its chief executive Kathy Cunningham, after running low on funds. He said the trust's inability to find a major sponsor for the Masters Games was a major factor.
Mr Stevens is one of six trustees on the Whanganui Events Trust. He believes new trustees are needed, so that the trust can continue to organise more community based events, with "a fresh start".
He believed the council needed to take back control to save the Masters Games from moving out of Whanganui. Council is already taking over the running of Cooks Gardens from the trust in June - a contract for which the trust was paid an annual mangement fee of $80,000, plus any gate takings.
"We need to hand the games over to council and they need to find a professional organisation to run it. It was reported the masters made a $10,000 profit but actually it lost thousands.
"We do not have the expertise or the track record - we have lost money on the last few games. We need a professional fundraiser and a marketing plan - we let ourselves down badly on both, at management and governance level."
Mr Stevens said the Masters Games were worth more than $6 million to the Whanganui economy and says they could be worth a lot more.
"If they allow the locals a look in. We spent $20,000 on one out of town band." Security contracts and food vendor stalls had gone to out of town businesses, he said, along with other contracts and locals were "not even in the picture."
"The greater the spend on locals the more money goes round in the local economy, and the greater the community buy-in to the event.
"The games aren't going anywhere. They will be held in Whanganui in 2019 and they will be successful. But they should be run by another organisation."
Whanganui District Council chief executive Kym Fell said council is working with the Whanganui Events Trust to evaluate its financial situation. "This may result in assisting the trust to divest its assets if required to meet any outstanding financial commitments," Mr Fell said.
Council already owns 49 per cent of the Masters Games and the trust 51 per cent.
"If the shareholding of New Zealand Masters Games were gifted to Whanganui District Council, then a council-controlled organisation would need to be formed, however there are a range of alternative frameworks which could be considered in respect to ownership.
"I believe the time is right for the council to play a stronger role in supporting this iconic event and we now have an opportunity to review and plan towards 2019.
"The New Zealand Masters Games originated in Whanganui and will continue to be a cornerstone event for a community which celebrates sporting achievement".