Divided trust sacks board members

By JON STOKES


A third of the board members on the embattled Waipareira Trust have been sacked days out from the release of an independent financial audit.

A motion to dismiss the group, known as the "tight five", was passed at last month's meeting of the trust, which provides social services in West Auckland.

The sacking followed months of bitter wrangling that culminated in the release of a report in July by trust member Airini Tukerangi - one of those dismissed.

She alleged that chief executive Reg Ratahi, chairman Eynon Delamere and chief financial officer Bruce Bryant committed the trust to loans worth millions of dollars and sold assets without board approval.

The claims led to the formation of an audit committee made up of Ms Tukerangi, Associate Maori Affairs Minister John Tamihere, trust member Joe Waru and treasurer Ricky Houghton.

The group commissioned accountants Deloittes to audit the trust's finances for the past seven years.

The Herald understands the motion to sack the five followed advice from lawyers Chen Palmer & Partners understood to have cost the trust up to $20,000.

Ms Tukerangi said she was not present at the meeting last month, but she had received a letter from Mr Delamere informing her that she was no longer able to attend trust meetings.

The dumping also removed Ms Tukerangi from the audit committee just days before the Deloittes report is due for release.

Mr Delamere could not be reached for comment, but a source on the trust said the five were sacked for constitutional breaches, including the release of confidential information and for entering trust offices without authorisation.

Ms Tukerangi said she doubted the legality of the sacking and had not ruled out challenging the move in the courts.

"We were informed last week with a formal letter that included a resolution by the board. Whanau members are asking, 'Is this constitutional?"'

But Ms Tukerangi said the priority was ensuring that the audit was made public.

"We do not want this issue to cloud the release of that audit."

She said an assurance had been given to the trust's more than 15,000 beneficiaries that the audit would be made public, and that management would not interfere in the audit process.

Mr Tamihere, who is a former chief executive of the trust, said he was concerned about the sackings.

He was also worried about what he believed were delaying tactics in the release of the audit report.

"I want to see that report and ensure its contents are made available to the trust's 15,000 beneficiaries."

Mr Tamihere's term as chief executive will also be scrutinised in the audit report.