Divided trust finds way to dump whistle-blower

By JON STOKES

The deputy chairman of a Northland sub-tribe who went public with concerns over the financial management of its $15.6 million treaty settlement has been dumped from the hapu's board.

Te Uri O Hau and Oruawharo Marae representative Wayne Smith was ousted from the eight-member board at a meeting yesterday following an investigation into trustee eligibility.

Trust general manager Esther Gray said the settlement deed excluded beneficiaries from the board if they had been convicted of an "indictable offence under the 1961 Crimes Act".

Mr Smith has a 20-year-old conviction for attempting to defraud, for which he received a nine-month periodic detention sentence.

Mr Smith accepted the finding but he questioned its timing - a month after he publicly criticised the trust's management.

"This is an orchestrated campaign to shut me up and all part of a damage control campaign by Graham Latimer and Russell Kemp and driven by lawyers Chen Palmer and Associates - all paid for by us the beneficiaries."

Mr Smith provided an email sent by Michael Hogan of public relations firm CPR New Zealand, to Mai Chen of Chen Palmer and to Ms Gray.

Mr Hogan suggested a strategy to "rob the current media focus of oxygen [starve it] and provide a manageable gap to enable Chen Palmer to complete its work ... "

He questioned what communication channels the trust and beneficiaries had and warned of consequences if they were not developed.

"If they [hapu members] feel disempowered, given the mushroom treatment, then the backlash will not go away. New Wayne Smiths will keep popping up everywhere."

A follow-up email from Chen Palmer to trust members recommended Mr Hogan's services at $250 an hour or $2000 a day - plus GST and expenses.

Mr Smith also slammed what appeared to be a selective application of the ineligibility rules.

"Russell Kemp was convicted of driving while disqualified following a ... driving ban. I have been advised that that is an indictable offence."

He also doubted the eligibility of Sir Graham Latimer, a former trust chairman.

Sir Graham pleaded guilty in the Whangarei District Court in 1995 to 10 charges involving income reporting discrepancies of $684,021, plus a GST shortfall of $31,245.

He was convicted and fined $16,000 for filing false tax returns and failing to register for GST.

But Ms Gray said the investigation found no other trustees had been "convicted of indictable offences".

Last month Mr Smith called for the release of "damning" legal and financial reports. He also called for Sir Graham to stand down pending an audit.

Reports into the handling of the Kaipara-based hapu's treaty settlement were commissioned from lawyers Lowndes Associates and accountants the Gibson Group at a cost of $110,000.

When completed in February they were to be made available to all beneficiaries.

This has not happened and attempts by the Herald to publish details brought threats of legal action by the trust's lawyers.

Ms Gray said an annual meeting was planned for November 13. A meeting with beneficiaries over concerns with the management of trustee assets would be called "in the next two weeks".

Restructuring was planned to separate the tribal development and social services from commercial activities, and to appoint a chief executive.

She said allegations of payment irregularities were still being investigated.

Oruawharo marae chairman Ben de Thierry was disappointed by Mr Smith's removal.

"We put him there, it should be up to us to take him out, not lawyers and certainly not those other members.

"He has and always has had our full support. It won't stop with his removal."