Two directors of Tainui's commercial board have been dumped following political wrangling within the tribe's executive.
The move signals a return to the infighting that has dogged the tribe's leadership and thrown its financial credibility into question.
Hemi Rau and Steve Murray were dumped from the board of Tainui Group Holdings (TGHL)
in favour of Tekaumaarua chairman Kingi Porima and deputy chairman Haydn Solomon.
Mr Rau is chief executive of the Waikato Raupatu Lands Trust, while Mr Murray is head of TGHL, the company charged with running the tribe's commercial interests.
The dumpings followed a motion put forward by executive member Tukoroirangi Morgan, a former NZ First MP. Mr Morgan said he was concerned about the influence Mr Rau and Mr Murray had in the tribe's financial affairs.
"I want a clear separation between operation and governance so we dumped them," he said.
Mr Morgan, who scraped on to the executive after an election in February, denied that he wanted a seat on the board.
"I didn't offer my name. Others wanted me to, but I am too busy."
The sackings are a blow for a board eager to improve Tainui's commercial credibility in the business community after years of financial mismanagement and infighting.
In February, the five-member board appointed former Dairy Board chief executive John Spencer as chairman.
He said at the time that he believed the tribe had learned from past mistakes and was "trying to move on".
Former Labour MP and Cabinet minister Koro Wetere also sits on the board, with Business Roundtable head Rob Mcleod filling the fifth spot as an adviser.
A tribal source said the dumpings were a continuing example of the divisions within the executive, and the move was "huge" because Mr Rau had been seen as "Koro's boy".
"This is the start of stripping him [Mr Rau] of power," the source said.
Mr Wetere and Mr Porima are known to have been involved in a power struggle within the executive.
One tribal source said the move by Mr Morgan signified a growing division within the new executive.
Political influence and resentment against Mr Rau had fuelled the split, said the source.
Mr Rau said he was disappointed but had to accept the executive's decisions.
"The tribe has turned a corner financially," he said.
"We cannot let the meddlings of a few hamper that."
- NZPA AND STAFF REPORTER
