Minister was warned gang would re-occupy seized HQ

Simon Power. Photo / Sarah Ivey

Justice Minister Simon Power was warned that a Black Power stronghold seized by police would fall back into the hands of the gang unless it was demolished - and that is exactly what happened.

The Mt Wellington headquarters were the hub of a $1.5 million cannabis ring and confiscated under the Proceeds of Crime Act, then sold by the Official Assignee in January.

But surveillance by the Weekend Herald revealed Black Power members moved back into the Jolson Rd property within months of the sale.

Papers released under the Official Information Act now reveal that a senior Justice Ministry lawyer warned Mr Power of a "risk" the gang would take control again if the property was sold.

"It is therefore proposed that, following consultation with the police and the local council, any buildings on the property be demolished and that the bare land be sold or gifted to the local council," wrote chief legal counsel Jeff Orr in June 2009.

The Official Assignee considered it highly unlikely a "reputable buyer" would be found, wrote Mr Orr.

Five days later, Mr Power directed the Official Assignee to sell or dispose of the Black Power pad as "appropriate". The proceeds of the sale would cover the costs incurred by the OA, with the Crown to receive the profits.

After being seized from owner Mark Pitman, the president of Black Power NZ and the head of the tinnie house, the property was sold in January for $245,000 to Houses 4 U Ltd, a property investment company. Houses 4 U onsold the property to a trust, which has no connections to the gang.

The new owner was told the gang had lost interest in the property. But Black Power quickly moved in and are in talks to buy the building back.

A spokesman for Mr Power said the Justice Minister left the Official Assignee to "deal with the matter" and his involvement ended there.

He had previously said he was concerned by the fact that the gang had moved back in and was watching to see if the tactic was a "one-off".

OA criminal proceeds manager Guy Sayers said he was not directed to consider demolition of the property and a buyer came forward to purchase it.

Mr Sayers said demolition of forfeited assets was not an option unless the property could not be sold, or there was a specific health or safety risk such as drug contamination or the building was derelict.

Further inquiries by the Herald with the Auckland City Council found most of the property is covered in illegal structures which need to be demolished anyway.

The council issued enforcement warnings to the new owner - but only after the gang moved out.

The biggest breach is the size of the building on the site. As a residential zoned property, the owners are allowed 35 per cent building coverage - in this case it is 75 per cent.

The property is supposed to have 40 per cent grassed or landscaped areas, but has none.

Other illegal additions which need to be demolished to comply with the District Plan include a lean-to at the rear and an ablution block.

Papers released under the Official Information Act reveal that Maori Party co-leader Pita Sharples stepped in to try to stop any demolition because the gang pad caters for the "spiritual and cultural needs" of Maori.

The MP wrote to the Auckland City Council asking staff to ignore the illegal structures and to grant a waiver for breaches of the district plan.

At the time, the new owner was in negotiations to sell the property to a trust connected to Dr Sharples' Tamaki Makarau electorate manager, Martin Cooper.

Mr Cooper is a former Black Power president who used to own the Jolson Rd property through the Piki Mai Trust.

In the letter, the Maori Affairs Minister said he attended a hui at the Black Power headquarters in 2005 with Tariana Turia as co-leaders of the Maori Party and that "the whare catered for the spiritual and cultural needs of our hui".