Fight heats up to head richest iwi

The head of New Zealand's richest tribe will have to fight to keep the position at this month's election, amid accusations of poor leadership and scratchy financial management.

Ngai Tahu's chairman, Mark Solomon, has held the job for the past eight years. But it is understood three of the 18-member Te Rununga o Ngai Tahu, the tribe's board representing around 37,000 tribal beneficiaries, have decided to contest the May 27 vote.

The Herald understands that the move to replace Mr Solomon has come from growing dissatisfaction at his ability to lead the board, and his failure to bring to heel the tribe's financial arm, Ngai Tahu Holdings Company.

It is understood the board has been paralysed by division with nine of the 18 members now staunch opponents of Mr Solomon, making his job difficult.

Mr Solomon narrowly survived a motion of no confidence, called by Ngai Tuahuriri representative Te Maire Tau at the meeting of the tribe's board in May 2004.

The motion failed by one vote, with deputy chairman Edward Ellison, who has since resigned, abstaining.

Veteran board member and broadcaster James Daniels is standing because he believes the role now exceeds Mr Solomon ability.

Mr Tau and Arowhenua representative Gary Waaka are also contesting the position.

Last week Mr Solomon applauded the tribe's half-yearly results that saw assets grow by $63 million to $532 million, with profit up year to date by almost $24 million.

The expanding asset base continues a trend that has seen the tribe more than treble its $170 million treaty settlement agreed in 1998.

The announcement and timing of the release of the financial information has earned the ire of the board's chief executive, Tahu Potiki.

In a confidential email sent to board members and Ngai Tahu Holdings chief executive Robyn Pratt Mr Potiki criticised the press release.

"The press release is politically motivated. I do not understand why the December six-month result is being released in May" said Mr Potiki.

He also questioned the reliability of the results, pointing out that $22.6 million of the tribe's profit came from property, with both the substantial tourism and seafood interests losing money.

"The forecast net surplus for seafood [as at January 31] is $120,000 on assets of $110 million."

He goes on to question why two- thirds of the tribe's equity growth has come from "non core assets, namely shares in Ryman and forestry lands".

The criticism echoes concern raised by some board members, who would not be named, who said much of the continued asset growth had come from a lucrative first right of refusal policy on most of the South Island's excess Crown land.

They said the growth was based on good fortune rather than good management.

Mr Potiki claims in the email that much of the tribe's profit last year was generated from the sale of lucrative assets, including shares in Ryman Healthcare, a listed company which manages care for the elderly.

He attacked the decision to sell 2.5 million Ryman shares at an average of $3.68 a share. The shares were now worth $7.26, "a loss in value of almost $9 million".

While unwilling to comment on Mr Potiki's email, Mr Daniels said the tribe needed restructuring if it was to move ahead.

Mr Daniels also called for a reduced interim chairman term of 18 to 24 months, which would be all the time he would require to ensure changes were implemented.

The chairman's role is understood to be worth around $140,000 annually.

Mr Solomon denied there was a split on the board, and declined to comment further.


Ngai Tahu

* $532 million in assets, making it NZ's richest tribe.
* 37,000 tribal beneficiaries.
* $15 million distributed to the Ngai Tahu Charitable Trust for social, cultural and environmental development.