Editorial: High stakes inquiry into donations

Charities connected to John Tamihere are being investigated after donating to his election campaigns. Photo / Dean Purcell, File

EDITORIAL

On the face of it, the accounts would seem to paint a clear picture of what happened with campaign funding for the political ambitions of John Tamihere.

Financial statements filed to the Charities Register for Te Whānau o Waipareira Trust Group showed $385,307 was advanced in related-party interest-free loans to its chief executive to “pursue the general elections and political aspirations” with the candidacy recorded as being “endorsed”. As of the filing date for the most-recently published accounts, there had been no repayments.

Accounts for the National Urban Māori Authority show $82,695 in “sponsorship payments” were provided to Tamihere to “pursue the 2020 elections and political aspirations for Māori Party” with him again being “endorsed” by the charity’s board.

Tamihere, chief executive of both organisations, ran for the Auckland mayoralty in 2019 and was also a candidate and co-leader of Te Pāti Māori during the 2020 general election. He has since become the party’s president. Charities Services opened an inquiry file in December 2019 when Tamihere disclosed his mayoral campaign received a $100,000 donation from Waipareira.

The definition of a charity is ages old, summed up in four principles: the relief of poverty; the advancement of education; the advancement of religion; and any other purposes beneficial to the community. To receive tax relief a charitable body must meet either of those criteria and, if challenged, must prove so in court. Charities can express support for a policy important to their purpose but mustn’t support or oppose a political party or candidate. This includes making a donation, endorsing a party or candidate, or allowing a party or candidate to use a charity’s resources. Deregistered charities lose their tax-free status and risk tax being applied across their net assets. According to the most recent Waipareira accounts, this could expose the organisation to a $16m tax bill.

Tamihere has said the leadership of his campaign was “honest and upfront” about funding. He said “discussions” with Charities Services were ongoing but any decision against the charities would be challenged. “It is a sad day for democracy in Aotearoa when Māori get demonised for being honest in publicly ensuring every cent spent to advance the Te Pāti Māori, or Māori causes by Māori people is somehow deemed illegal or unworthy.” He says electoral laws need to be changed to force all political parties to fully disclose the source of all funds. In this respect, Tamihere is right. More transparency is needed on the monies changing hands around political campaigns.

It’s understood Charities Services has made a decision and is considering feedback from Waipareira before the Charities Registration Board issues a ruling. But the matter has dragged on for some years — it needs settled. Upholding the prohibition on charities getting into politics will send the matter to court. Allowing it might unlock millions of donations to political parties.