Merepeka Raukawa-Tait: An inability to move on

I got into the lift in the Beehive some years ago and the MP for Remuera, Douglas Graham, he wasn't knighted at the time, got in as well. After he got out at his floor, I said to the chief executive of the government department I was with that I hadn't realised Mr Graham was so short. He chortled and said: "They're all short over here, Merepeka."

I suspect Sir Douglas has shrunk considerably over the last couple of years, in standing that is. It hasn't been pretty to observe and the calls for him to be stripped of his knighthood are getting louder. I feel sorry for Sir Douglas and his family.

He was one of the four Lombard Finance directors found guilty last year of making untrue statements in investment documents and advertisements in late 2007 and early 2008. He must rue the day he accepted that directorship. Some people are happy to accept such positions and go all out to acquire them. Being able to say you're a professional director, and putting that on your CV, is a long-held dream for them. But not all dreams have a silver lining. And directors today sadly sometimes go where angels feared to tread in the past.

This week, the Court of Appeal upheld Sir Douglas's and the other directors' convictions. The Crown's contention was their respective sentences did not reflect the gravity of the offending. I can't believe Sir Douglas purposely set out to lie to 4000 Lombard investors. But the judgment makes it clear that "if directors cannot be satisfied the statements contained in the offer documents are true and not misleading by omission, the offer should not be made irrespective of the consequences that might then flow". It's clear then as a director Sir Douglas's obligation was to investors when a public offer is made; not to Lombard. This judgment must be unsettling for directors of other financial institutions. Perhaps hands won't be shooting up when director positions become available. There can be severe consequences for the decisions they make; a wrong call could see them being prosecuted and going to jail.

So what's in a name? It must count for something as we have seen former MPs, including former Prime Minister Dame Jenny Shipley, take up various directorships. Being a recognised name is one thing but you still must have the business smarts to go with the role. I believe people see an MP's name and associate that with trust and respect. They judge that person to be honest and not one to shaft them. Former MPs have been around and have contacts. They know the business environment and wouldn't be involved in any organisation where there was the slightest hint of irregularity.

But what happens, as in Lombard's case, when it all goes pear-shaped? The investors feel betrayed. They had confidence in Lombard because they saw Sir Douglas's involvement as a director. They trusted him and the institution. A total of $130 million was lost. They now want utu (pay back). I would expect Sir Douglas's name had more pulling power than the other three directors. And he's not just a director, he's also a knight of the realm. And that has some investors hot under the collar. He should be above reproach. For him to retain his title, that would never do.

Yet I would be sorry to see him stripped of it. He had another life long before he became a director of Lombard. He had an unblemished career as a solicitor. Then followed years of loyal, trusted service to our country as an MP. As the Minister of Treaty Settlements in the National government, he steered the first two major Treaty of Waitangi settlements; Ngai Tahu and Tainui, to a successful conclusion. His contribution, at that time and within a caucus not fully in agreement with settlements, saw him break new ground and gain the respect of thousands of New Zealanders; Maori and Pakeha.

He has fallen from grace, been humiliated and had to pay thousands of dollars' reparation. Taking Sir Douglas' title from him won't get Lombard investors their money back. It may bring them some short-term satisfaction but little else.

There are times when through stupidity, having our eyes wide shut or lacking the courage to do what we know is right, catches up with us and we take a tumble. But there is no need to stay on our knees. It's what comes next that counts. Our ability to get back up, dust ourselves off and move forward again, will allow us to regain our self-respect. Those who feel cheated out of their revenge, should Sir Douglas get to keep his knighthood, may want to check in with themselves. Do they choose to focus on their loss, their disappointment or do they choose another approach. That being to acknowledge how much they learned from the experience, albeit at great cost. I hope Sir Douglas sees it this way too.