December 29, 2015
Aupouri expansion leads to collapse
Rapid and unauthorised expansion has been blamed for the downfall of Te Aupouri Maori Trust Board.
Iwi members have been briefed on an audit ordered by Maori Development Minister Te Ururoa Flavell after the board hurredly shuttered or sold its Kaitaia-based social services in August, citing "challenging financial circumstances".
The collapse means Te Runanga Nui o Te Aupouri, which was set to take over the board’s assets after the tribe’s treaty settlement legislation was passed, will instead inherit a debt of as much as $3 million, including $540,000 in unpaid tax.
Between 2012 and 2015 the trust board grew rapidly and set up five subsidiary companies.
The audit found poor financial management, inadequate governance and a failure by management to raise key financial issues with the board.
Runanga chair Rick Witana told the Northern Advocate there were worrying governance and managerial practices and poor decision-making.
The trust board failed to report to the minister as it was required by statute or to report to the iwi.
He says the losses would affect what the runanga could do for Te Aupouri over the next five years.
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