While intentions may be well meaning, the community-focused WEL Energy Trust has taken a dangerous pathway "behind closed doors" to initiate and approve an establishment grant toward set up costs, including staff costs, for a parallel foundation to do what the trust is meant to do.
Trustees are also proposing to give another $10 million of power consumers' money to the organisation for "intergenerational projects" once the Trust Deed has been changed to accommodate the grant.
On February 26, WEL Energy Trust amended guidelines for Eligibility of Trustee Initiated Grants. This allowed "variance, such as with regard to organisations in existence for less than 12 months, to receive funding from the trust outside of the annual grants round. The circumstances must be extenuating and the reasons compelling". Also "the request must be initiated/sponsored by a trustee".
On March 26, the Momentum Foundation received an $80,000 grant from WEL Trust with a possible $10 million to follow. According to funding guidelines, "the request must be considered at an ordinary monthly trust meeting unless the degree of urgency and exceptionality of the circumstances warranted a special meeting according to the rules of the trust". For some reason this grant was discussed and passed in the public excluded part of the meeting to avoid public scrutiny.
Contriving a situation behind closed doors in order to "do things differently" is compromising the integrity of the Trust Deed.
"The establishment of the foundation was a trust initiative," as stated by the chairman, Mark Ingle, also proposing another $10 million grant for their newly-formed organisation.
This makes a mockery of the purposes of the trust and flouts its own guidelines and eligibility rules, particularly concerning the trust's Conflict of Interest policy.
WEL Trust community funding criteria states "funding is intended only to assist your organisation. You cannot pass on your funding to another organisation".
Therefore, to enable a further $10 million grant to Momentum Foundation, there must be changes to the Trust Deed involving public consultation but as the trust is an enigma to most people, this shouldn't pose much of a problem.
Contriving to create a parallel funding organisation to WEL Trust and manipulation of the Trust Deed and funding guidelines to accomplish this, is manipulation in the true sense of the word!
WEL Energy Trust is a community trust and the trustees have been publicly-elected and remunerated to fund organisations and projects directly, not via the establishment of a trust-initiated, parallel foundation.
One wonders the real purpose behind the initiative and which project will be the first to receive funding. This foundation will also be able to apply for further funding from WEL Trust - out of round and during annual funding rounds.
Any conflicts of interest will likely be swept under the trust table, or discussed confidentially.
Editor: The elected WEL Energy Trust owns WEL Networks on behalf of the community and is responsible for an annual line charge discount and the distribution of about $2 million to community groups annually.
Have a say - make a submission
The trust is proposing to amend the income trust purposes in the Trust Deed by amending clause 9.3 (d) and inserting a new clause which will allow the trust to make grants to charitable and not-for-profit organisations in the community.
Submissions to the proposals must be made by July 15 ahead of the decision which will be finalised on July 23.
Submissions can be made online on survey monkey, delivered in person to the WEL Energy Trust offices at 1st Floor NWM Building, cnr London and Victoria Sts, Hamilton. Submissions delivered in person must be in by 2pm on July 15 or posted to WEL Energy Trust, PO Box 1336, Hamilton 3240. They must be received by July 15.
An opportunity to be heard by the trust on submissions lodged will be given, if requested.
The hearing will be held before the trust meeting on July 23 and time will be advised after the close of submissions.
All written submissions will be available to the public after the closing date.