Tamihere back in charge at Waipareira

John Tamihere is at the helm of the Waipareira Trust again

Former cabinet minister John Tamihere is back at the helm of West Auckland's Waipareira Trust following the axing of chief executive Reg Ratahi at a special meeting this week.

The Herald understands Mr Ratahi was removed after a motion of no confidence was moved against him at a meeting on Wednesday.

It is understood the motion followed revelations that the Inland Revenue Department had issued the trust with a statutory demand for unpaid taxes.

The demand was made in February but it is understood that until Wednesday most trustees were unaware of it.

More than $1 million is owed to the IRD, and debts of more than $3 million are owed to banks, creditors and in legal fees.

Mr Tamihere was appointed executive trustee following Mr Ratahi's removal and his proposal to resolve the trust's cash flow problems by selling assets, including its health clinic premises and shares in the property investment company Westland, was supported unanimously.

Mr Tamihere was trust chief executive from 1991 to 1999 before he entered Parliament. He was seen as a star in the Labour Party, but too many ill-considered comments saw his star wane.

Damning claims in 2004 led to him being stripped of his ministerial portfolios. It was alleged he had misspent trust money, but a Serious Fraud Office investigation cleared him of wrongdoing.

He fell out with caucus colleagues when he criticised many of them in an interview with Investigate magazine. The MP described one cabinet minister as "smarmy", another as a "tosser" and said the Government's policies were too politically correct.

Despite being cleared of wrongdoing at Waipareira, he was not reinstated to Cabinet.

He lost his Tamaki Makaurau seat to Maori Party co-leader Pita Sharples at last year's elections, but two months later he stood for and won a place with four supporters on the trust board.

Treasurer Ricky Houghton denied that the trust was kept in the dark about cash-flow problems, including those with the IRD. He said a proposal to sell more than $4 million of the trust's Westland shares was put to the board last month.

Mr Houghton also claimed Mr Tamihere's appointment as executive trustee was unconstitutional. He said the latest round of blood-letting was his last.

It is understood Mr Houghton tendered his resignation yesterday.

Mr Tamihere declined to comment last night.