Health empire in trouble

Liquidators of a formerly-thriving manufacturing business founded by well-known Waipu herbalist Malcolm Harker are investigating cash payments of about $450,000 his company made to a Maori group for "protection".
The High Court placed the business in liquidation on April 19 for non-payment of tax. The herbalist was formerly a leading New Zealand producer of traditional herbal remedies.
They were sold nationally and overseas through his "online pharmacy" and from an outlet in Waipu township.
A report by liquidators Grant Burns and Richard Agnew of PriceWaterhouseCooper (PWC) said Mr Harker and Allan Ryan, directors of Harker & Ryan Herbal Products Ltd, stated they paid $450,000 to Raureti Reginald Ruka Korako, chief executive of Te Oti Tuakana Maori Incorporation for "protection".
Documents obtained by the Northern Advocate do not say what protection was offered but an example of the company's products, Malcolm Harker Shave Balm, still features on the website with the statement "this product is fully-protected by Te Oti Tuakana Maori Incorporation". These words have been replaced by the phrase "this product is fully-protected by Ngati Pakau Ki Te Waka Uru Ao Inc" on the rapidly diminishing cache of the company's products
in Whangarei health stores.
Ryan and Harker had also said  Mr Korako had "instructed" them not to file returns or to make payments for Harker & Ryan's tax obligations, the liquidators' reports said.
The liquidators had been advised that  Mr Korako had a spreadsheet relating to the payments but the two directors had no documentation.
Manufacturing has apparently ceased at the Harker & Ryan plant in Waipu. All equipment is believed to have been removed by the liquidator.
The Inland Revenue Department has also filed bankruptcy proceedings against the directors.
The case involving Malcolm Harker came before Judge Roger Bell in the Whangarei Court last week.
Counsel for Harker, Jeremy Browne, told the judge his client had paid money to a Maori sovereignty group instead of paying tax.
 The PWC liquidators were looking to sell the business as a going concern. There was some dispute as to whether his client or new owners would own the formulae for the herbal products but there was "a prospect of a deal which would see him able to pay his IRD debt".
The judge granted the counsel's request for an adjournment to proceedings, setting them forward to August 15.
 
 Northland health store owners say customers are upset at not being able to buy the products any more.
Jan Going, manager of Hardy Healthy Living, said the company had had "an excellent product which had a lot of support".
Healthwise Kamo owner Jennifer Beachen said: "It was the most popular line I had in my shop. We are having to think about what we can get to replace that will be of as high a quality."
Ms Beachan said her last order came through in April.

 Raurati Reginald Ruka Korako went bankrupt last year. A Raurati Reginald Korako is listed as being the former director of two companies which have been struck off the Companies Register, To The Days Ltd and R & B Consulting Services Ltd.  Mr Korako could not be contacted for comment yesterday.