CFRT claims 'incorrect, highly misleading'

Crown Forest Rental Trust trustee Sir Edward Durie has dismissed the "repeated " characterisation" of current issues with the trust as being entirely a consequence of the New Zealand Maori Council and the Federation of Maori Authorities' inability to agree on the appointment of alternate trustees as incorrect and highly misleading.

Sir Edward made his comments in a letter to trust chairman Angela Foulkes, in response to a letter in her name that had been widely distributed on June 22.

As Ms Foulkes was aware, he said, he had raised a number of issues in relation to the administration o the trust. He had been prevented from having those issues resolved, or even addressed by the trustees, however. Only one issue had so far been resolved, Sir Edward understanding that Ms Foulkes now accepted that he was correct, and that the trustees had previously acted unlawfully and in breach of trust.

Ms Foulkes had now "announced widely" that 'all applications for approved client status and for funding that had been on hold for the past three months would be placed on the agenda for a trustees' meeting within the next month,' before discussing the agenda for the next meeting with her fellow trustees (or at least not with Maanu Paul or Sir Edward).

Two other issues remained to be resolved before the trust was able to consider any of the matters proposed for the next meeting, the first being the general approach to conflicts, and therefore which, if any, of the trustees were conflicted in relation to applications currently before the trust.

"Clearly this is a matter that needs to be resolved with priority," Sir Edward said.

"Depending on how it is resolved, the issue of alternates may not even arise."

Ms Foulkes had herself described the trustees as deadlocked over that issue as recently as the previous week.

The second issue concerned funding criteria, which was one of those that Ms Foulkes proposed to refer to the High Court.

Sir Edward said Ms Foulkes' distribution of her letter amongst applicants that were awaiting decisions had resulted in some heated discussions, including questions being raised regarding his actions as a trustee.

"I can assure you and the waiting applicants that I have raised these various issues before the trustees not because of some technical deficiencies in the operation of the trust," he added.

"Rather I raised these issues because of my concern that the trust was being operated in a manner that was not only unlawful but which was contrary to the interests of Maori, including contrary to the interests of those groups currently before the Waitangi Tribunal in the Paparahi o te Raki inquiry...

"The claimants need to know first whether the trust will fund the full 21-weeks inquiry that the tribunal referred to, or whether after six weeks the trust will fund only a mandated entity for negotiations.

"When I attempted to raise these issues before the trustees in April you blocked the discussion on the basis that it was your intention to put these issues before the High Court. More than two months later the trustees have still not discussed these issues, and no application to the High Court has been forthcoming.

"Through my counsel, I have therefore put forward a proposal that these issues be referred to mediation. I believe the mediation proposal offers the quickest and surest means of releasing funds for the Paparahi o te Raki inquiry."

Three of the CFRT trustees - Ms Foulkes, a former vice-chairman and secretary of the New Zealand Council of Trade Unions, lawyer Guy Royal and John Wilson, formerly at Treasury - are appointed by the Crown, while three - Sir Edward, accountant Alan Haronga and C Maanu Paul, one of the New Zealand Maori Council negotiators who gave rise to the forming of the trust - are appointed by the Maori Council and the Federation of Maori Authorities.

The trust's role includes making funding available for the negotiation of claim settlements that involve, or might involve, Crown forest leased lands.