Billy Macfarlane says he will continue to house people under bail conditions at an address off Te Ngae Rd, Ōwhata. Photo / NZME
The founder of a parolee reintegration programme says he will continue working with people on bail as he fights serious personal allegations and a council consent battle over his controversial site.
The Department of Corrections has confirmed parolees living at the Ōwhata site have been moved after it ended its contract with the Pūwhakamua reintegration programme.
RNZ reported last month the contract was terminated after Corrections learned of “serious sexual” allegations against the programme’s leader, reformed drug lord Billy Macfarlane.
Macfarlane faced allegations in relation to a woman who was on bail in Auckland, RNZ reported. He denied any wrongdoing.
A police spokesperson confirmed on Wednesday that the complaint investigation by the Counties Manukau Adult Sexual Assault Team was still “in the early stages”.
Macfarlane has resigned as general manager of the Tikanga Aroro Charitable Trust, which oversaw the programme.
Corrections told Local Democracy Reporting that this would not change its position.
Deputy chief executive of communities, partnerships and pathways, Juanita Ryan, said Corrections had “not received assurances” from the trust about Pūwhakamua’s suitability, and the contract termination remained.
Ryan said the last of five men who had been living at the Ōwhata site under the contract were relocated last Thursday.
Corrections was moving the men to “alternative approved accommodation”, some outside the Rotorua district, Ryan said.
“We are committed to ensuring the men who currently use this reintegration service have safe, suitable accommodation, and our focus remains on ensuring public safety is upheld.”
Macfarlane told Local Democracy Reporting he had yet to be contacted by police and had “no doubt” an investigation would clear his name.
While parolees under the Corrections contract had moved on, Macfarlane said others remained at the site under bail conditions.
He said the land was still leased to him and he would continue working from the location to support those still on the property.
“Corrections have only been our funder and without them I’ll go back to how I started,” he said.
“I did two or three years without them before.”
The programme began in 2018 and Corrections has provided $2.6 million since November 2022. It also agreed to fund $800,000 annually until 2027, alongside a $2.7m conditional infrastructure grant in 2023.
Macfarlane claimed Corrections had put the parolees from his programme at risk over an “unfounded allegation”.
“They have just sent them back into the danger zone, the areas where they weren’t able to be paroled to,” he claimed.
“It’s wrong as there is still an investigation going on.”
Corrections rejected those claims, saying address suitability was assessed using factors including proximity to victims, who else lived at the property, access to support services, and reliable GPS signal access if electronic monitoring was required.
“We take our management of offenders in the community extremely seriously and no person managed by Corrections would be allowed to reside at an address if it was not seemed suitable for them to do so,” Ryan said.
The allegations came amid a battle with Rotorua Lakes Council over the programme’s site, which recently reached the Environment Court.
Macfarlane admitted the relationship with the council had “not been good” in recent years, but that finding a home for the programme was challenging.
“People don’t like it. It’s always ‘not in my backyard’, but if it’s your son, you want help,” he said.
“If it’s someone else’s, you want them locked up.”
A proposal to move Pūwhakamua to Waikite Valley was axed in September after pushback from residents, the council and Corrections.
It remained at the property just off Te Ngae Rd, where it started in 2018.
Pūwhakamua was permitted to provide for up to 14 men, with eight permitted to live on-site.
Earlier this year, Corrections said this condition had been breached on “multiple instances” in the first half of 2025, with no recorded breaches after May.
The council served an abatement notice last March, alleging the programme was operating at the site without the necessary consent.
This notice was withdrawn after the trust argued it met “papakāinga” provisions.
The council later elevated the matter to the Environment Court and a mediation hearing took place at the end of February.
An Environment Court spokesperson said both parties had filed a “joint memorandum” but this remained with the judge for further directions.
The council’s organisational performance and innovation group manager, Sam Fellows, said it was “not yet clear” what the latest developments meant for the ongoing legal proceedings.
“Any confirmation of an Environment Court hearing will be communicated through the formal court process,” Fellows said.
He said the council did not assist in the relocation of parolees as it is “not a council responsibility”.
“Council’s role is to ensure that land use activities within the district comply with the District Plan.”
An email to the Tikanga Aroro Charitable Trust seeking comment for this story bounced back, saying its operations had “ceased”.
Local Democracy Reporting also attempted to contact other figures in the trust.
Mathew Nash is a Local Democracy Reporting journalist based at the Rotorua Daily Post. He has previously written for SunLive, been a regular contributor to RNZ and was a football reporter in the UK for eight years.
– LDR is local body journalism co-funded by RNZ and NZ On Air.