Fed-up Tainui manager quits job

By GREGG WYCHERLEY

The chief executive of the troubled Waikato tribe Tainui has resigned after just four months in the job, blaming board mismanagement of the $180 million business.

David Gray, a former KPMG director and Manukau City Council investment consultant, has stepped down as head of the tribe's Waikato Raupatu Lands Trust.

Mr Gray told the Herald that the trust board had refused to act on proper advice and he had reached the point where protecting his own integrity had become more important than trying to help Tainui.

"The board and I have vastly differing views on the quality of governance necessary to run [this] business," he said.

"It became impossible for me to do the job I was appointed to do."

Mr Gray's resignation is the latest in a series of departures and problems for Tainui since it received $170 million from the Crown in the historic Treaty of Waitangi claim settlement in 1995.

Other top executives of Tainui's various divisions who have left include:

* Lady Raiha Mahuta, widow of Tainui leader Sir Robert Mahuta, who was made redundant.

* Legal adviser Shane Solomon, who quit last December.

* Craig Beecroft, sacked one year into a three-year chief executive contract in 1998.

* Greg Parker, chief executive of Tainui Development, who was made redundant mid-way through a two-year contract in 1999.

* Jeff Green, whose contract as special projects manager was terminated in 1999.

Disastrous investments, wasteful spending and internal power struggles have resulted in a failure to build on the initial asset.

In the 1999-2000 financial year, Tainui posted a $40 million asset writedown.

In contrast, South Island's Ngai Tahu, which also received a $170 million settlement package, in 1998, now has a total asset base of $370 million.

Tainui chairman Kingi Porima said in a statement: "David has made very good progress in implementing a new structure within the tribe and we're sorry to see him go. However, we understand his reasons."

An executive committee would fill the gap until a new trust chief was appointed, and executive member Hemi Rau would assume day-to-day trust management.

Mr Gray - who resigned 10 days ago - said the board's decision on Friday to take over day-to-day management was a perfect example of how not to govern an organisation.

His role as trust services manager involved a responsibility to distribute benefits created by Tainui Group Holdings.

But he feared that many of Tainui's 47,000 beneficiaries would never receive anything.

"There is a deep sense of cynicism within the tribe concerning the future - many beneficiaries have lost hope that the organisation will deliver them any benefits."