Aupouri Maori Trust Board insolvent, but not fraudulent, inquiry finds

Friday 18th December 2015

A Ministerial-ordered inquiry into the financial woes of Aupouri Maori Trust Board has cleared the entity of any misdoing, though confirmed its insolvency.

Maori Development Minister Te Ururoa Flavell has directed the trust's board to meet its financial reporting obligations after EY partner Grant Taylor's investigation into the body "found no evidence of fraud or mismanagement," but confirmed it was insolvent, Flavell said in a statement.

He encouraged the board to work closely with Te Runanga Nui o Te Aupouri to address the liabilities and risks identified in the report.

Flavell appointed Taylor in September after launching a ministerial investigation in late August when the Kaitaia-based board stopped providing services and laid off staff, and signalled it faced "challenging financial circumstances".

In January 2012, the Crown and Te Aupōuri signed a deed of settlement, which saw the the iwi awarded $21.04 million for breaches by the Crown under the Treaty of Waitangi. The legislation enabling the settlement passed its third reading in September of this year, which would see the trust board wound up and a new entity established.

In the runanga's 2014-2019 strategic plan, it estimated it would hold $40 million of commercial assets generating annual income of $2 million after the settlement was completed, and set up two subsidiaries to hold the investments: one for fisheries, and one for its other interests.

BusinessDesk.co.nz

Comments from our readers

No comments yet