HAMILTON - A top-secret review of Tainui rips the tribe's operations body to shreds, identifying suspect cash control and urging a stop to spending.
The report, obtained by the Herald, found a lack of clear direction, poor budgeting and accountabilities, an unfocused organisational structure and ineffectual financial disciplines.
Delivered toa tribal creditor, the Bank of New Zealand, by accountants PricewaterhouseCoopers in November, the review said there was no disciplined governance within the Waikato Raupatu Lands Trust, which was set up to receive a $170 million settlement from the Crown.
A new strategy committee, led by Sir Robert Mahuta, has since approved a $40 million asset writedown, the sale of non-performing businesses, and the wind-down of the high-risk MDC investment company.
Tainui legal adviser Shane Solomon said yesterday the report was inaccurate but he refused to comment further, saying a hui last Saturday of tribal council Te Kauhanganui ruled that iwi matters were not to be discussed in the media.
A partner from Pricewaterhouse- Coopers, Richard Agnew, said last night the report was prepared for a client and his company would now discuss with that client how the media had obtained the document.
A spokeswoman for the BNZ, Carol Young, said she could not comment because of client confidentiality.
PricewaterhouseCoopers was instructed by the trust last August to undertake the review.
Its report said the trust's performance had deteriorated since the 1995 settlement, with losses being incurred as a result of expenses and grants growing faster than rents and other incomes.
Debt was estimated to rise from $26.8 million last year to more than $55 million by 2002 while losses of nearly $22 million were projected over the period to March 2002.
Assets were forecast to fall from $211.5 million in 1999 to $192.2 million in 2002 - a loss of more than $19 million in Tainui capital.
While the tribal trust owned substantial assets, the report said it could not afford to continue to borrow to fund underperforming investments and ballooning expenses and grants.
"To avoid financial embarrassment to Tainui there must be an immediate and significant reduction in all capital expenditure and expenses immediately."
