Iwi board fired amid claims of corruption

A High Court judge has sacked four board members of the country's northern-most iwi after allegations of dishonesty and corruption.

The Maori Trustee has been appointed to replace the Ngati Kuri board following a decision by Justice Colin Nicholson in the Wellington High Court.

The case came after an acrimonious split in the board involving claims of political backroom dealing and the payment of hundreds of thousands of dollars and expensive European cars. It paralysed the 11-member board for more than three years.

Justice Nicholson's decision earlier this month brings to an end the battle undertaken by former chairman Graeme Neho, who was dumped by members criticised in the judgment.

Justice Nicholson dismissed Tom Bowling Murray, Paul Norman, Hine Lelievre and Teri Norman as trustees of the Ngati Kuri Trust Board.

They have also been banned from standing in any future Ngati Kuri election without the special permission of the court.

Mr Neho was removed as chairman in August 2003 when a motion of no confidence was called on his leadership.

He claimed his removal was driven by four board members to stop him raising conflict of interest claims against deputy chairwoman Ms Lelievre and her company, Rata Consultants.

The claim involved a contract between Rata, co-owned with Andrew Christie, Ms Lelievre's brother, struck in July 2003 with Chinese investment company, CAN Trust.

The contract involved building 50 Chinese-made kitset houses on land at Te Hapua administered by the Muriwhenua Incorporation.

The plan involved securing immigration approval for Chinese workers who were clients of CAN.

Rata was to receive a cash payment of $200,000 with Ms Lelievre and Mr Christie also receiving new BMW cars.

Mr Neho believed Ms Lelievre had falsely represented the trust and Muriwhenua Incorporation - neither group were aware of the deal - in dealing with CAN.

However, Mr Neho was unable to raise the matter at the meeting as the four members, who held a majority due to absent and vacant board positions, supported the motion of no confidence against him.

Included in the group was Mr Norman, former partner of Ms Lelievre and father of their child.

Justice Nicholson found it difficult to believe that Mr Murray, who was later elected chairman, had not known of the Rata/CAN matter before the August meeting that removed Mr Neho.

"It ... defies credulity to accept his evidence that he went into the 28 August meeting without any knowledge of the Rata/CAN matter."

Discussion about the contract was dropped after Mr Neho's removal.

"This contract was made without the knowledge or authority of the board or Muriwhenua Corporation and was in clear conflict with Ms Lelievre's fiduciary duties and responsibilities as a board member. They acted corruptly," Justice Nicholson said.

"The nature and terms of the Rata/CAN contract, particularly the part about Ms Lelievre and Mr Christie getting the personal benefit of expensive vehicles and their company a cash payment of $200,000, were such as to cause alarm bells to ring in the mind of any literate board member who had the opportunity of looking at it."

He found Mr Murray, Ms Lelievre, Mr Norman and Teri Norman "conspired before the August 28, 2003, meeting to quash discussion and decision by the board about the Rata/CAN matter and to do this by the ambush removal of Mr Neho as chairman, and appointing Mr Murray in his place.

"They achieved this corrupt object and, consequently, the Rata/CAN matter was never properly discussed and dealt with at a board meeting."


The judgment

* Justice Colin Nicholson found Ngati Kuri Trust Board deputy chairwoman Hine Lelievre and her brother, Andrew Christie, "acted corruptly" by drawing up a plan to reward themselves with $200,000 and a BMW each.

* The payments were to be made over a deal involving Chinese kitset houses and immigration approval for Chinese workers.

* When former board chairman Graeme Neho found out about the deal, four board members - Ms Lelievre, her former partner, Paul Norman, Teri Norman and Tom Bowling Murray - sacked him.