The man in charge of growing Ngati Awa’s $110 million assets
was adamant that he has done nothing wrong despite rubberstamping a deal with his mate's company worth $3.8 million.
“I am not prepared to stand down from NAGHL (Ngati Awa Group
Holdings Ltd) because firstly I am here to protect the commerciality of NAGHL,”
he said.
Called to report to the Te Runanga o Ngati Awa (TRONA) board
after revelations that NAGHL had paid $3.8 million to a carbon credit company
without prior necessary approvals, Ta Wira Gardiner’s argument was persuasive.
He said that Graham Pryor was not a director of NAGHL at the
time the contract with CO2 New Zealand Management Company was instigated. In fact, according to Sir Gardiner in the
interest of succession planning, Mr Pryor had only been invited to join the
tribe’s investment committee.
“And if there is an area that I should be accountable and
disciplined then it is as we got into period of uncertainty I should have been a
lot stronger and apologise for that.”
But Sir Gardiner backed his skills as a chairman of a
corporate organisation.
“I’m prepared to stack my reputation against anyone in the
country except for maybe Fonterra.”
In regards to the latest revelations around the carbon
credit investment, Sir Gardiner said there had been no wrong-doing.Sir Gardiner said Mr Pryor had been part of the Central North Island (CNI) settlement representing Tuwharetoa and was made a director of CO2 New Zealand Management Company as a result.
He said when he became aware of the potential conflict of
interest he required Mr Pryor to resign as a director of the company.
It was a compelling argument and rather than facing any
further questions Sir Gardiner was commended by board chairman Te Kei Merito.
But let’s recap.
A report to the audit committee outlined the incident. In the
report it was stated that Mr Pryor had received legal advice which was addressed to
the NAGHL board.
The legal advice raised serious issues concerning the
suitability of the investment and contract for Ngati Awa. Mr Pryor did not pass
on the advice.
In addition the report also stated that based on advice from
Mr Pryor, Sir Gardiner approved the $3.8 million deal with C02 New Zealand
Management Company without gaining approval from the NAGHL board or the TRONA
one.
“The director (Mr Pryor) advised the chairman that the board
had some time approved the contract. There is no documentary evidence (minutes
or other record) to evidence apart from a “heads of agreement” with CO2 that
had been signed much earlier and pror to due diligence and legal review,” the report noted
It was also discussed that there has been poor documentation in
regard to services provided in lieu of repayment of a loan balance. The loan
was not disclosed in the report.
Furthermore, it seems attention from this blog and certain
media outlets have got the former civil servant a little hot under the collar.
In full swing of his statement to the board Sir Gardiner
said he was concerned that information was being leaked because of posts on
this blog, stories in the beacon and a news report on Maori Television’s Te
Kaea.
Sir Gardiner said the information was coming from the
TRONA board and that if the leaks continued he would have to implement
restrictions.
“We are legally required to provide you with quarterly
reports but if it is going to result in danger then we may not to be so open.”
Sir Gardiner also issued a challenge at the TRONA board
meeting, which was held last Friday at Te Manuka Tutahi marae in Whakatane, that he would be willing to sit down and talk with anyone who had the
manners to put their inquiries to him.
Additionally, to combat the “negative” media Sir Gardiner said he would
like place half page advertisements in the newspapers explaining the failed
investments to the “shareholders”- that is the tribal members.
“But not with the Beacon. I do not like the Beacon. I do not
want to support any newspaper which always focuses on the negative.”
So here are my problems with Sir Gardiner’s statements at
the TRONA board meeting last week.
Firstly if Mr Pryor was not part of NAGHL when the decision
to invest $3.8 million with C02 New Zealand Management Company then why did he
receive the legal advice? And why has Mr Pryor not been reprimanded for not
passing on that crucial advice?
Rather Mr Pryor was made a director of NAGHL and also the
chairman of the investment’s committee following the investment.Secondly, why did Sir Gardiner not check that there had been the necessary approvals before committing the $3.8 million? I mean that is a lot of money, particularly on the back of losing $5.2 million through the failed golf course with Birnie Capital and the internet service provider company, Go Net.
Thirdly, what did the Beacon get wrong? And more interestingly
does Sir Gardiner dispute the latest story to feature in the Beacon about
there being an out-clause for the carbon investment?
And lastly, I would like to take Sir Gardiner up on his
offer to sit down and explain things. I stand by every factual statement that I
have made on this blog and I would like to know if Sir Gardiner can do the same
for the assertions he made to the board at last week’s meeting. If anyone can
give me a contact number, I would be happy to give him a call and set up a
time.
Next time I will return to the subject that I had already
said I would discuss in this post and that is the change in directors on the
audit committee.
Ma te wa.