Investigation into Waipareira political donations referred to Charities Registration Board

An investigation by charity regulators into election financing by the Waipareira Trust to campaigns run by its chief executive John Tamihere has concluded with the case being referred to the Charities Registration Board. Photo / Mike Scott

A four-year investigation into the legality of the Waipareira Trust’s provision of hundreds of thousands of dollars in donations to political campaigns linked to its chief executive John Tamihere has finally concluded, with the case referred for determination by peak regulator, the Charities Registration Board.

The development marks a key milestone in and signals an imminent conclusion to the long-running case, which began looking at $100,000 provided to Tamihere’s unsuccessful run for Auckland Mayor in 2019 but was later widened to scrutinise finance and in-kind support provided to Te Pāti Māori’s general election campaigns in 2020 and 2023.

Tamihere was a candidate for Te Pāti Māori in the 2020 election, and has been the party’s president since 2022.

At issue is long-established case law forbidding charities from supporting or funding political parties or candidates, with regulator Charities Services advising on its website: “Charities may support the policies of a political party where they’re consistent with its charitable purposes; however, they have to ensure that they’re independent and don’t provide support or funding to a political party.”

Charities Services first opened its investigation in late 2019 following Herald reports that Waipareira had contributed $100,000 to Tamihere’s mayoral campaign.

The regulator later concluded that approving this donation amounted to serious wrongdoing at the trust, but this finding was later withdrawn after Waipareira complained and reclassified the donation as a no-interest related-party loan to Tamihere.

The investigation widened when subsequent annual reports for Waipareira filed to the Charities Register recorded the level of loans advanced to Tamihere for political campaigning had by 2022 increased to $385,307 – largely related to Te Pāti Māori’s campaign at the 2020 general election – with no repayments yet recorded.

In early 2023, the regulator and Waipareira reached a settlement of sorts with the trust agreeing to no longer engage in political endorsements or funding and also issue a demand for repayment to Tamihere.

But months later this settlement broke down and the investigation was reopened over questions from Charities Services about whether the loan had been repaid and fresh complaints that a public Matariki concert held by Waipareira was used by Te Pāti Māori to launch its 2023 election campaign.

Subsequent annual reports filed by Waipareia for the 2023 financial year record the related-party loan was repaid in May 2023, but also state the trust’s executives – of whom Tamihere is the most senior – that year also received a pay increase of 77% to each earn an average of $510,679.

A Herald survey of all large New Zealand charities found this increase now meant Waipareira has the country’s highest-paid charity executives.

Progress since has been glacial with neither party willing to provide details on developments.

In early May, more than four years after its investigation had started, Charities Services told the Herald: “We are in the final stages of our investigation and are unable to comment further at this time. We will be in a position to provide more information in the near future.”

A month later, the regulator said: “We are in the final stages of our investigation and are unable to comment further at this time. We should know more in the coming weeks.”

This week it provided a fresh update: “Our investigation is now complete and the matter is before the Charities Registration Board for decision.”

Charities Services was unwilling to disclose what actions it had recommended to its board, or when the board would meet to make its determination, but said: “The board is actively considering this matter.”

The referral to the board is rare, with the Charities Services website saying: “In practice, most decisions are made by Charities Services acting under formal delegation and guidance from the board. However, the board always deals with more complex or novel cases and those where organisations disagree with Charities Services’ decisions.”

The ultimate sanction available to the board is deregistration, which would see the charity lose its tax-free status and trigger a one-off tax levied on net assets. According to Waipareira’s most recent annual reports, this potential tax bill could exceed $20 million.

Asked about the case, whether Waipareira disagreed with Charities Service recommendations and if he would appeal any adverse finding or decision to deregister through the courts, Tamihere this week declined to address questions.

His sole and complete response to the Herald was: “F*** off! Print that!”

The board, comprised of lawyers Gwendoline Keel and Loretta Lovell, and consultant Dr Bev Gatenby, typically meets monthly.

In the past four years, it had made only five published decisions. All concern whether a new charity should be allowed to register, or whether an established charity should be deregistered.

Its most significant decisions over the past decade – to deregister Greenpeace and Family First over concerns their political advocacy was not charitable – were subsequently appealed all the way to the Supreme Court. The former charity ultimately won its case, while the latter lost.

Keel, the board chair, stood down from her role last year after standing as a candidate for the Labour Party in the Port Waikato electorate. She ultimately lost that race, and Charities Services said following the election that she had since resumed her chairing duties.