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Home / Business

Trust members deny financial wrongdoing

By James Ihaka
13 Feb, 2007 04:00 PM2 mins to read

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KEY POINTS:

Members of a charitable trust at the centre of allegations involving $5 million transferred from the Cerebral Palsy Society's bank accounts say they have done nothing wrong.

The former directors of Focus 2000, the business arm of the society, released a statement through their lawyer yesterday after the
organisation took legal action against them.

The society claims it and the new Focus 2000 board cannot access the money, which the five former directors placed in a fund.

Papers were filed in the High Court at Auckland last Friday against the five - Focus 2000 chief executive Anne Murphy, Walt Beanland, Christine Williamson, Nikki Pye and John Thorpe.

Ms Murphy has been suspended from her position pending the court case.

The five set up the Cerebral Palsy Endowment Foundation as a charitable trust last October.

Its solicitor, Brian Ellis, said yesterday that it was established "following years of discussion" as a "prudent method of managing and disseminating funds".

Most of the proposed trustees had affiliations with the Cerebral Palsy Society and Focus 2000.

He said the trust had tried to settle the matter with the society.

Focus 2000's new chairman, Craig Hobbs, said the former directors decided last October to set aside the $5 million as seed money for the new foundation, but it has nothing to do with Focus 2000 or the Cerebral Palsy Society.

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