Iwi in lawsuit to get back $500,000

Sir Graham Latimer. Photo / Herald on Sunday

A tribal organisation which has lost millions of dollars in a year has taken Sir Graham Latimer and others to court to recover $500,000.

Until January, Sir Graham was the deputy chairman of Te Uri o Hau Settlement Trust, whose lands stretch around the Kaipara Harbour and encompass seven hapu.

Sir Graham and former chairman Russell Kemp were stood down while the trust investigated trustee, directors' and consultancy fees the pair were paid.

The trust wants Sir Graham, Mr Kemp and a company on which Mr Kemp is a director - RBT Enterprises - to repay the money.

That legal action is under way in the High Court at Whangarei.

Sir Graham - former chairman of the Maori Council and National Party vice-president - and Mr Kemp are defending the action.

Their lawyer, Mai Chen, said it would be inappropriate to comment as the matter was before the court.

Trust chairwoman Mihi Watene said in the trust's annual report that another unnamed trustee had also been drawn into the financial wrangle.

"The trustees have informed the beneficiaries that it was investigating payments made to two of the trustees.

"However, because ... another trustee had dissented the resolution on the grounds 'that costs could be debilitating to the trust' [they have] become party as a defendant and legal proceedings have been initiated against them to recover the $500,000 in payments."

The trust, which represents 7000 people, received a Treaty settlement in 2002 worth $15.6 million.

On March 31 this year, the trust's assets were worth $17.2 million, but their value over the year had more than halved from $37.8 million.

Ms Watene did not return calls yesterday, but in the annual report said the situation was disappointing given that many people had worked so hard over the years.

"With hindsight, some of our investment decisions were questionable and those decisions together with the global recession have led to the situation that we are in today."

New directors of Renaissance Group, the trust's commercial arm, have said nearly every investment under-performed in the past year.

Hugely concerning is the uncertainty around repayment of $9 million which Renaissance loaned to Te Arai Coastal Lands - a company involved in a stalled property development at Mangawhai.

Renaissance directors who were removed in January included the Mayor of Whangarei, Stan Semenoff, Sir Graham, Jamie Paikea, John Marsden and Laly Haddon.

The trust's annual meeting is this Saturday.