By JAMES GARDINER
The financially battered Tainui tribe says an Australian businessman, Phil Pryke, was partly responsible for some of its bad investments.
Mr Pryke was paid directors' fees for serving on the boards of four companies belonging to the Waikato-based tribe. He also billed it more than $600,000 for consultancy work he did for the companies.
His advice led to two major business ventures Tainui leaders now regret - the purchase of a fishing company for up to $8 million more than it is now thought to be worth and underwriting a portfolio of housing loans. The tribe is faced with writing down its $245 million asset base by $40 million and selling land and businesses to clear $31 million in debts.
Until he returned to Sydney and a top management job last year, Mr Pryke was chief executive of the Health Funding Authority and held numerous directorships, including Enza and Sealord Products.
He remains chairman of Contact Energy.
The Herald has obtained a copy of one invoice from Mr Pryke to Tainui that shows total fees of $490,500 were charged for his work on Tainui's decision to underwrite $65.4 million worth of Housing Corporation Maori home loans.
Tainui spokesman and legal adviser Shane Solomon confirmed the bill, and that Tainui's payment for taking on the risk associated with the transaction totalled $650,000, meaning a net profit of $159,500.
"Even if we got the whole payment it doesn't justify the risk that we took on board."
Another bill for $150,000 was for his work on the purchase of Hartstone Fisheries, which cost the tribe about $14 million but is expected to be revalued at between $6 million and $9 million.
As chairman of Raukura Waikato Fisheries (which took over Hartstone) from May 1997 until April last year, Mr Pryke was paid $20,000 a year.
As a director of Tainui Group Holding (May 1998 to April 1999) he got $22,500, and as a director of MDC Investments Ltd (February 1997 to November 1999), he received $17,500 a year.
Mr Solomon said Mr Pryke was not the only director, so he could not be blamed solely for board decisions, but he was relied on heavily by other directors and management because of his broad business experience and financial skills.
"There's a difference between skills and governance, the principles of governance, and that may be the issue.
"He was a director at the same time. I would have thought if you got a bonus the size that he got, you would have questioned whether you should rightfully take it or not."
In Sydney yesterday Mr Pryke was not prepared to discuss the matter - or any others.
His assistant said Mr Pryke had no comment about Tainui, Contact or himself, then hung up.
Tainui blame Australian for mistakes
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