Huge losses alleged at trust

By JON STOKES maori issues reporter

The heads of West Auckland's Waipareira Trust are facing tough questions following the release of a report alleging potential losses of at least $3 million and mounting unpaid debt.

The report, compiled by trust member Airini Tukerangi, alleges chairman Eynon Delamere, chief executive Reg Ratahi, and chief financial officer Bruce Bryant have committed the trust to loans worth millions of dollars and sold assets without board approval - in breach of its constitution.

A meeting has been called for Waipareira whanau for Tuesday to discuss concerns and to seek answers from the trust's leaders.

The report alleges:

* The unauthorised sale of 12ha of marae land, on West Coast Rd.

* Outstanding debt of $630,000 to Inland Revenue.

* Unauthorised loans including $2 million from the Waitakere City Council, and $1 million from Westland Ltd and more than $1 million from Dorchester finance.

* Losses of $3 million incurred by the trust's contract call centre.

Former trust chief executive and Associate Maori Affairs Minister John Tamihere has called for the chief executive officer and chairman to stand aside for an independent audit and a review of the trust's dealings "so that all trustees are fully informed and can meet their obligations to their beneficiaries".

"An independent audit and review from people with some capacity and integrity is long overdue."

A board member who did not want to be named, said 10 of the 17-strong board supported Tuesday's meeting, with a motion of no confidence in the chairman and the chief executive likely to be moved at the next board meeting later this month.

The member called for an urgent independent audit of the trust.

Board chairman Eynon Delamere is overseas and could not be reached for comment.

Mr Ratahi denied the accusations, and referred comment to deputy chairwoman Naida Glavish.

Ms Glavish also rebuffed the claims, saying they were motivated by a tight five in the board with a "hidden agenda" against the chairman and chief executive.

"The accusations are absolutely unfair and untrue. These people are setting off scud missiles while the chairman is overseas."

Ms Glavish said a special meeting had been called for this Wednesday to address the allegations. She welcomed a full audit of the trust.

"We will be making contact with an auditor, and also seeking legal advice on the illegal actions of some of our board."

She did however concede that the trust was experiencing "some financial issues that need resolution - what business doesn't?"