Hapu wants checks after $6.2m goes down gurgler

A Turangi hapu that owes $6.2 million to financiers - more than it received in its Treaty settlement - wants the Government to make sure there are tougher measures to check those who control tribal purses.

The Ngati Turangitukua Charitable Trust received $5 million a decade ago and bought a 12.5 per cent stake in Te Whenua Venture Holdings (TWVH) in 2006.

That company had shareholders that included other Ngati Tuwharetoa trusts, individual developers and another company called Ngahuia, owned by former Cabinet minister Richard Prebble.

In January, TWVH, which had proposed developing land it bought into a resort, golf course and residential project, went into receivership.

That prompted Ngati Turangitukua to boot out its trustees, alleging hapu members had been kept in the dark about the company's operations.

Since then, new chairman Ned Wikaira has been trying to find out what the trust's liability is.

The latest estimates sit at around $6.2 million owed to Westpac and Dorchester Finance.

Mr Wikaira said that was a "staggering" amount for the hapu, and in an effort to staunch the flow of finances out of its accounts, the trust would not be giving educational or health grants, thought to be worth about $20,000 a year to beneficiaries.

What is left in the kitty for future generations is not yet known.

Mr Wikaira said that while Ngati Turangitukua knew its liability now, it was frustrating that beneficiaries didn't know how their money was spent because they had not received any reports since 2006. Investigators would be hired to try to find out.

"If there is shown to be dishonesty of fraudulent behaviour then we'll do something about it."

Mr Prebble still believes the project has merit. He invested $1 million, and if it goes under he could lose it.

The trust meets on Sunday with beneficiaries to update them on the situation.