KEY POINTS:
In a major financial turnaround Te Whanau o Waipareira Trust has turned multimillion-dollar losses into a $5 million gain, created more staff jobs and is completely debt-free.
It is understood the social services and health provider based in Henderson recorded losses of about $16.5 million over the past
six years.
Last year the trust suffered internal rows over management and sacked former chief-executive Reg Ratahi, canned its education and training initiatives, was forced into selling off landholdings and had to sack about 60 workers.
More than $1 million was owed to the Inland Revenue Department and debts of more than $3 million were owed to banks, creditors and in legal fees.
But in a turnaround labelled "dramatic" by the organisation's chief executive and Waitakere mayoral candidate, John Tamihere, the trust recorded a $2.5 million profit for the year ending June.
Mr Tamihere, who previously led the trust from 1991 to 1999 before entering Parliament, said the trust had a balance sheet of $19 million, had freehold ownership of its site on the corner of Great North and Edmonton Roads and was "ready to get back on the front foot" after posting a $2.5 million loss last year.
"I just think the accelerated way in which the whanau turned itself around in 18 months is sensational and for the first time in the history of the whanau we have no debt, no mortgages, positive cashflow, no overdrafts and no outstanding accounts," said Mr Tamihere.
"It's rebuilding our mana with our people and our stakeholders."
The trust's general manager, Paul Stanley, said in previous years the organisation's investments were being used to prop up under-performing contractual arrangements.
The trust has since restructured itself and reinvested in "the right people in the right places" particularly in its social services and health wings.
Staff numbers, which were around 200 last year, are down to about 120 but Mr Stanley expected this to rise again as morale lifted.
"The key is we've re-populated the place with people with skills and a commitment to our kaupapa [purpose]."
The subsidiary companies the trust has involvement with, which include health providers Waipareira Pasifika, Hapai Te Hauora Tapui and Waiora Healthcare PHO, also provided positive returns for the trust for the first time.
"Not only were we streamlining things and making things were more efficient but we are making sure all the success we have is permeating through those subsidiaries we have interests in as well," said Mr Stanley.
He said the trust had also ended a costly vehicle leasing programme and was upgrading its computer systems.
Denis Hansen, who is one of the organisation's original trustees, said he was pleased Mr Tamihere was back at the helm but was disappointed by what he called "previous mismanagement" which resulted in lucrative assets being sold.
The former chief executive, Reg Ratahi, could not be contacted for comment.