Has trust been open and transparent about proposed capital raise?

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

Opinion

Re: Eastland Generation seeks 50 percent capital partner, July 10 story.

The proposed strategic capital raise to help fund the expansion of Eastland Generation’s renewable generation portfolio and Trust Tairawhiti’s involvement is intriguing. Trust Tairawhiti scored a big dividend through Eastland Group after the sale of the line network company and the trust has now decided to invest $30 million of it back in one of the group’s other companies in what is termed a short-term investment. A money-go-round springs to mind.

In making this decision I wonder if the trustees have considered:

1. What is short term? What if another partner is not found?

2. Is the investment within the object of the trust to sustain economic growth within the district? Kawerau is not in this district.

3. Was the investment proposal included in this year’s Statement of Intent which the trust has to sign off with council? What were councillors told?

4. The importance of taking independent advice before making this investment decision. Or did the trustees simply rely on advice from Forsyth Barr who are advising the group on seeking the capital? Perhaps the trustees should be publicly tabling the advice they received and the process leading to this decision.

5. Have they really handled this in an open, transparent way?

G Webb