Richest iwi loses senior manager over infighting

Growing friction between the cultural and financial boards of the country's richest iwi have been blamed for the shock resignation of the tribe's top financial manager.

A senior Ngai Tahu source has revealed that a deal has been struck between senior board members of Ngai Tahu Holdings Corporation and chief executive Robin Pratt, which will see them part ways.

Earlier this week Mr Pratt, who is responsible for managing the tribe's more than $500 million in assets, resigned, saying he would leave at the end of the financial year in July.

In a press release, he attributed the tribe's recent financial success to the clear separation of its commercial and tribal interests - a reference to plans to increase the influence the tribe's executive, Te Rununga o Ngai Tahu (Tront), has on financial decision making.

"With the new interrelationship proposed in the future, I don't think I am the right person to lead commercial growth going forward," he said.

However, the Herald understands that Mr Pratt resigned almost two weeks ago.

The source said Mr Pratt claimed constructive dismissal following the announcement of the planned changes to tribal governance, and quit on May 12.

The resignation is understood to have led to a hastily arranged meeting, at the direction of chairman Maika Mason, between the deputy chairwoman of Holdings Corp, Sue Sheldon and Mr Pratt.

Details of the meeting remain confidential but it is understood Mr Pratt agreed to stay on for a further three months.

The source said the deal and an almost two-week silence had angered a number of board members already frustrated by a growing rift between the cultural and financial bodies.

The relationship was described as "difficult and quite politically tense".

This weekend, Ngai Tahu chairman Mark Solomon is being challenged by three board members, James Daniels, Te Maire Tau and Gary Waaka.

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.

The report also detailed criticisms about recent financial results from the Holdings Corp by tribal chief executive Tahu Potiki.

He questioned the reliability of recent financial results, with the substantial tourism and seafood interests losing money, and questioned why two- thirds of the tribe's equity growth has come from "non-core assets, namely shares in Ryman and forestry lands".

A Ngai Tahu spokesman said the tribe had no comment to make.