Solomon hits out on Ngai Tahu rift
THE PRESS – 28 October 2006
By MATT PHILP and JANINE BENNETTS
A leaked report on Ngai Tahu's leadership highlights serious problems in the management of the tribe's multimillion-dollar empire.
The report came as Ngai Tahu chairman Mark Solomon broke his silence on deep divisions within the iwi, including a ongoing campaign against him.
An independent report into the leadership and management of Te Runanga o Ngai Tahu (Tront) carried out early this year and leaked to The Press this week outlines several management problems within the company, including:
- Inadequate governing structures and behaviour.
- Slow and inefficient decision-making at board meetings.
- Mismatched expectations of board members around each other and of the kaiwhakahaere (chairman).
- Confusion over Tront's roles of representation and trusteeship.
“There is united agreement that existing governance structures and governance behaviour of Te Runanga o Ngai Tahu are inadequate and in need of change,” the report said.
Comments from interviewees published in the report highlight divisions of opinion at the boardroom table as well as inadequate communication and working relationships within the company. Tront’s 18-member board manages more than $500 million of assets for the iwi’s 37,000 members.
The Press understands a second review of Tront board members’ performance was critical of Solomon’s performance.
Other board members were also rated.
Solomon was narrowly re-elected as chairman in May after two votes split the board 9-9, giving Solomon the position by being the incumbent.
Since the election he has survived several attempts from his nine opposers to oust him.
Solomon has not spoken publicly about divisions in Tront, but this week admitted to The Press there had been a long campaign to unseat him.
“They haven’t done it yet – and they’ve had a number of attempts,” he said.
“There’s been much said about my chairmanship. We all know what the rules are. We all know how we are supposed to act at the table, but not all adhere to those rules.”
Board members contacted by The Press last night did not want to comment.
Rumours of a power struggle between Solomon and Tront chief executive Tahu Potiki have been circulating for months.
In a confidential email from Potiki to a lawyer, leaked to The Press in May, Potiki outlined concerns about key relationships within the tribe, including his relationship with Solomon.
Solomon said he and Potiki still had a working relationship.
“He’s denying that he acted against me,” Solomon said. “I don’t have proof positive. We have to get on with our job – simple as that. I have a fortnightly meeting diaried with Tahu Potiki. I’m not preventing us working together.”
However, it is understood that because of the dispute between the two leaders, Potiki no longer reports directly to Solomon and instead reports to the Ngai Tahu Group Board.
Potiki last night declined to comment on his relationship with Solomon or the governance review.
Last month, a confidential draft annual report showed that Tront’s commercial arm, Ngai Tahu Holdings Corporation (NTHC), reported a $20 million loss in the 2005-2006 financial year.
The corporation has had a turbulent year, with its chief executive, Robin Pratt, quitting in May and subsequent resignations of several of its board members.
Solomon said politics may “possibly” be beginning to interfere with the tribe’s business and that communication with the former NTHC board was generally dysfunctional.
“There has been a communication breakdown where requests by Tront never reached the board or only got to a certain level,” he said.
“The breakdown in communications was a two-way street and has been addressed.”
There is also concern at Tront over investigations into concerns first raised by Ngai Tahu kaumatua Sir Tipene O’Regan that the purchase of Wellington-based Cook Strait Fishing was “improper”.
“Some transactions, while strategically sound, were appallingly executed,” O’Regan said.
“I have raised the question as to whether or not that has been properly examined.”
Solomon said a report on the company’s fisheries issues was due next month.