Report claims double-dipping at Tainui

By JON STOKES, Maori issues reporter

A confidential report into Tainui's handling of almost $600,000 worth of Correction Department prison consultation contracts alleges that the tribe's staff claimed more than $40,000 in double payments.

The report, released to the tribe's executive yesterday, highlighted poor accountability by tribal management that allowed four staff, including board co-chairman Haydn Solomon, to invoice both Tainui and Corrections for more than $10,000 each for the same work.

The report, by Indepth Forensic Investigations, said project team leader Tahi Ngakete received $11,250 in double payments and claimed double in mileage travel claims between December 2002 and January 2003.

Mr Solomon, Norman Hill, and Tuti Cooper were overpaid by $10,384 each.

The Waikato Raupatu Lands Trust is criticised in the report for "inadequate consideration ... given to various governance and administrative issues" for the agreement it entered into with Corrections in April 2002. This resulted in minimal communication between the WRLT and Corrections, and the tribe receiving no reports from its Corrections staff.

The report said this resulted in the "CEO and the board being less than adequately informed" about what work staff were doing, despite staff being based at the tribe's Hopuhopu headquarters.

It goes on to say that "due to the lack of communication between the Lands Trust and the Department, several project team members received duplicate payments for the same set of services".

The report recommends the board consider recovering the overpaid amount from the four staff members.

The Weekend Herald understands the executive are seeking legal advice and are considering further action. It is understood Mr Solomon's position as co-chairman is under scrutiny.

The report is believed to have cost about $50,000 and comes on top of a hefty legal bill for the tribe after Mr Solomon's successful Auckland High Court challenge of his April suspension and subsequent re-instatement as co-chairman.

The report was ordered this year after Tainui was criticised by Act MP Rodney Hide, who used parliamentary privilege to read a letter sent to Corrections Department Minister Paul Swain last year from a lawyer who previously worked for the tribe.

Mr Hide quoted Ms Irene Kereama-Royal saying she was the only trust employee working on environmental issues during 2002. She and the trust chief executive of the time, David Gray, believed that the Corrections contract was unsound, but the pair were overridden by other (Tainui) Corrections staff and tribal members.

"In all my years of working in this area, I have never seen such manipulation of the resource consent process nor had I seen before the blatant corruption for pecuniary gain that went on with some of the Waikato Corrections employees."

The tribe's handling of Correction Department contracts was a reason cited for Mr Gray's, resignation. Tainui co-chairman Tuku Morgan and chief executive Hemi Rau refused to comment.

Tainui Payments

* HAYDN SOLOMON

Project co-ordinator, double payment $10,384. Tainui's co-chairman. Employed by Corrections Department as a prison consultant.

* TAHI NGAKETE

Project team leader, double payment $11,500. Suspended on full pay, pending investigation.

* TUTI COOPER

Former project officer, double payment $10,384. Employed by tribe on working group tasked with getting Tainui's Endowed College operational.

* NORMAN HILL

Project officer, double payment $10,384. Suspended on full pay pending investigation.