PwC has been charged with probing dealings with Eke Panuku Development Auckland. Photo /supplied
PwC has been charged with probing dealings with Eke Panuku Development Auckland. Photo /supplied
Ngāti Whātua Ōrakei Whai Rawa and Eke Panuku Development Auckland have both welcomed a report on potential conflicts of interest at Auckland Council’s property arm after concerns were raised.
Chairman Michael Stiassny said the PwC report confirmed concerns but Eke Panuku said it had been cleared by the report.
Thereport stressed Ngāti Whātua was not questioning the integrity of board members.
But PwC found conflict of interest procedures at Eke Pānuku could be improved, although the development business said nothing was found wrong.
The report made recommendations including that Auckland Council consider a minimum number of independent directors, appointing an independent board chair and limiting business relationships board members may have with Eke Panuku.
Stiassny said: “The report clearly demonstrates that Ngāti Whātua Ōrākei Whai Rawa was right to raise serious concerns about the management of conflicts of interest by the Board of Eke Panuku earlier this year.”
Plans for the Avondale land - one of the deals complained about. Photo / supplied
However, the report also highlights that even if all recommendations are implemented, the risk of conflicts of interest at Eke Panuku cannot be fully mitigated.
“Of particular note, PwC found that even without direct influence in a specific transaction or area, board members have broader visibility of the organisation’s strategic intent that may give them an information advantage, potentially causing a conflict of interest to arise,” he said.
“We are pleased to see that Mayor Wayne Brown has acknowledged that the issues raised in the PwC report are of concern and that they require attention.
“Ngāti Whātua Ōrākei Whai Rawa believes the council needs to act swiftly to reassess both its board appointment process and conflicts of interest procedures to respond to the conclusions reached in this independent report,” Stiassny added.
“These actions are necessary if the council wishes to re-establish public confidence and trust in Eke Panuku.”
Michael Stiassny complained about potential conflicts of interest. Photo / Jason Oxenham
But Eke Panuku indicated today it was satisfied with the outcome.
Auckland Council said it informed Eke Pānuku of the PwC review findings.
“We welcome the findings and note that the report shows no evidence of conflicts of interest or individual benefits,” Eke Panuku said.
“We note the suggestions for the council to consider the board appointment settings. We look forward to working with the council on next steps once recommendations have been made to the appropriate council committees.”
The report from PwC partners Laura Hillier and Stephen Drain was commissioned after Stiassny complained.
Eke Panuku is chaired by Paul Majurey of Ngāti Marutūahu.
Majurey is also a director of Marutūahu tribe Ngāti Maru’s corporate arm and represented the iwi in a High Court hearing last year disputing Ngāti Whatua’s claim to exclusive legal rights as Auckland’s mana whenua.
One of the transactions complained about was the sale of Eke Panuku Avondale land to the Marutūahu-Ockham Partnership.
Majurey (Ngāti Maru, Ngāti Whanaunga, Ngāti Tamaterā, Ngāti Pāoa) declared a conflict of interest and left the meeting where that was discussed. He is a lawyer of law firm Atkins Holm Majurey.
The PwC report outlined how Auckland Council could make changes.
“The council could consider appointing a minimum number of independent board members, appointing an independent board chair, limits on the extent of the business relationships board members may have with the organisation or a combination of these measures,” the report said.
Board members could influence high-level plans affecting asset disposals “even before they had a potential conflict which met the threshold for disclosure”, it said.
Paul Majurey is Eke Panuku's chairman. Photo / Dean Purcell
Eke Panuku published information about board deliberations but sensitive information could be redacted from public view the board had access to, it said.
Even with proper operation of controls in place and recommended improvements from the report, the perception of a conflict of interest might persist given the board composition, it said.
“Eke Panuku and Auckland Council should consider the board appointment settings with respect to ensuring that there is an appropriate balance between the necessary commercial expertise whilst ensuring public trust,” the report said.
But PwC said Eke Panuku’s conflict of interest risks cannot be mitigated by management controls.
Staissny said several current and previous Eke Panuku directors were cited in a list of eight projects.
Those included Majurey, Victoria Carroll, Martin Udale, Adrienne Young-Cooper and David Kennedy.
Stiassny said “as a result of these processes, property development businesses with people placed on the Panuku board may enjoy an advantage”.
Public sector organisations must avoid conflicts of interest and be manifestly seen to do so, otherwise, those they deal with cannot have confidence in them, Stiassny said.
Former Mayor Phil Goff wrote to council chief executive Jim Stabback in May about Stiassny’s complaints.
Goff asked Stabback to ask the risk and assurance team to investigate and check compliance and good practice had been adhered to.
Majurey, asked to comment about the situation, told the Herald the PwC review was commissioned on conflict of interest policies, not individual conduct.
“From the outset, the council wanted to have Eke Panuku governance which is representative of property development and urban regeneration business expertise because that is its core business. This is not the first time there have been such reviews as its important the CCOs have best practice processes to manage conflicts,” Majurey said previously.
John Carter of Eke Panuku Development Auckland at Avondale. Photo / supplied
Eke Panuku had taken considerable care to manage conflicts, especially at board level, so having an external advisor review those processes was helpful for continuous improvement, he said.
“We are in the development/regeneration business and there are often parties who, when they miss out on a project, want to raise questions. It is important then to be open to reviewing the process as we are,” he said.
The Herald reported on November 28 how Ngāti Whātua Ōrākei Trust had increased total group assets 6.4 per cent annually.
The business has big landholdings around Te Tōangaroa Quay Park in central Auckland and has enjoyed property revaluation rises.
