Mana Ahuriri Trust under investigation ahead of Treaty settlement

A judge has ordered an "urgent" independent review into Mana Ahuriri Trust after concerns were raised that it is making plans involving treaty settlement assets it is yet to receive.

One trustee is also facing a "please explain" directive over public comments made regarding plans to invest settlement funds in a property development.

The trust is a Treaty Settlement Group for seven Ahuriri hapū, which are beneficiaries of the Ahuriri Hapū Claims Settlement Bill expected to be passed by Parliament later this year.

The Treaty of Waitangi settlement was signed in 2016, with commercial redress including $19.5 million and the right to purchase Crown land.

Māori Land Court documents reveal a review that will look into the transparency of the trust's actions.

The documents also note that three trustees entered into contracts with themselves as contractors, enabling them to charge the trust more than $109,000 a year.

The trust's financial position meant that it was forced to take a mortgage on its only property.

The trust has planned multiple developments using settlement land through development company Mana Ahuriri Holdings Ltd.

This company is a joint venture between the trust and another company owned by developer Warren Ladbrook.

Mana Ahuriri Trustee Barry Wilson is a director of Mana Ahuriri Holdings, along with Ladbrook. Wilson and Ladbrook both declined to comment.

Wilson had recently outlined planned Napier developments to Hawke's Bay Today.

Plans include up to 350 new homes in Greenmeadows as well as large-format retail developments on Prebensen Dr and Napier's business district.

A submission to the court from Chad Tareha, on behalf of the Ngāti Pārau Trust, called for the replacement of the Mana Ahuriri Trust, and a review of its conduct.

A further memorandum from Tareha said Wilson's published comments appeared to be at odds with statements made in evidence "to the effect that no commitments had been entered into in respect of the settlement assets".

"It is also not discussed in the minutes disclosed to the Court or mentioned in the Trust's annual reports," the memorandum said.

"However, it appears to be another case where the Trustees are making significant decisions in respect of settlement assets before they have been obtained and without communications to beneficiaries.

"The need for independent review and accountability is urgent."

Maori Land Court Judge Layne Harvey ordered a "detailed review" of the trust so that "all relevant issues are properly canvassed" and for Wilson to respond to the submission regarding his media comments by Friday, August 6.

Wilson declined to comment to Hawke's Bay Today on the judge's request.

The Waitangi Tribunal is also concerned about trustee behaviour, recommending the Settlement Bill not be passed in Parliament until there was a new election for Mana Ahuriri Trustees.

Voting closes on August 9.

Ladbrook declined to comment on the review, but had earlier stated that the election of new trustees was unlikely to lead to the development projects being held up.

"No is a simple answer.

"But, as with any commercial venture, there is always that risk," he said.

"For example, another GFC".

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