Matauri X: Liquidate or restructure

A Far North Maori group in danger of losing its land over a failed investment must either go into liquidation or restructure its management, a legal adviser has said.

The Maori Land Court is holding an investigation into the committee of management of the Matauri X incorporation, which owns 500ha of coastal land at Matauri Bay, 58km northwest of Kawakawa.

Matauri X is in danger of losing the land over a $2.5 million loan taken out to invest in mineral water company Eternal Waters, which was placed into liquidation last year and is due to be auctioned this month.

The loan and investment was not approved by the 430 shareholders. Te Tai Tokerau MP and former Maori Affairs Minister Dover Samuels was the largest single shareholder.

Court-appointed legal adviser Brian Henry said the incorporation now had two options: to go into liquidation or to restructure its management committee and employ professional, outside managers.

The committee of management had justified the investment because it needed to raise money to pay off its outstanding "substantial" rates bill, he said.

Hemi Rua Rapata, who was the committee of management chairman at the time of the loan deal, said he sincerely regretted the outcome of the deal and accepted responsibility for the decisions.

Matauri X is also awaiting a High Court judge's ruling on whether it must pay back the $2.5 million loan.

The matter is set to continue in the Maori Land Court in March.

- NZPA