Tainui settlement with CEO costs tribe $160,000

By JON STOKES maori affairs reporter



A stoush between Tainui's board and its chief executive has ended - at a cost of more than $160,000 to the tribe.

The tribe's board, Tekaumaarua, has withdrawn misconduct allegations against Waikato Lands Trust chief executive Hemi Rau after he agreed to end a personal grievance case, taken out last year, at a meeting this week.

The Herald understands Mr Rau was paid a $10,000 bonus, given a further $10,000 pay increase, and had his original three-year employment contract extended for an indefinite term as part of the settlement.

It is understood that the board agreed to provide a written apology, and to pay Mr Rau's legal costs, taking the total legal bill for the dispute to $150,000.

Former Maori Affairs Minister and executive member Koro Wetere brokered the deal.

The settlement followed a failed bid to sack Mr Rau by executive co-chairman Tuku Morgan at an executive meeting last December.

Mr Morgan's bid failed when fellow chairman Haydn Solomon refused to support the move.

Mr Solomon had said that he did not believe the move was legal and that it exposed the tribe to court action.

The settlement brought to a close an at-times acrimonious battle between Mr Rau and members of the executive that led to the sacking of Kingi Porima as executive chairman in July after he refused to support moves to oust Mr Rau.

It is understood an earlier settlement between Mr Rau and the executive announced in February failed because Mr Rau wanted to be re-instated to the TGHL board.

In the final settlement Mr Rau did not seek re-instatement.

Tainui co-chairman Tuku Morgan said he was pleased to have the matter resolved.

"It has been a long an expensive process. It's time we moved on."

Mr Rau described the settlement as fair, before declining any further comment.