Iwi wants $1.8m back from failed land deal

A Turangi-based iwi says it is 1.8million out of pocket after a company behind a multimillion-dollar land deal went into partial receivership.

Te Whenua Venture Holdings paid $10.8 million for 650 hectares of former Landcorp farmland at Mangamawhitiwhiti beside the Tongariro River.

The plan was to build a new township with 2500 house sections, a 45-hole golf course and a fishing lodge.

Former Labour Cabinet minister and ACT MP Richard Prebble was recruited as a director to provide legal advice.

The company went into receivership last month, owing $9 million to mortgage holders Westpac Bank and Dominion Finance.

Turangi hapu Ngati Turangitukua now wants the return of $1.8 million that it lent to Te Whenua, through Ngati Turangitukua Charitable Trust.

The trust administers funds for the hapu from Waitangi Tribunal decisions.

Court action is to be taken in an attempt to remove hapu members involved in the land deal from the charitable trust.

At meetings held at Turangi's Hirangi Marae last week, angry hapu members passed a no-confidence motion in the trust and called for the resignation of hapu members associated with the deal.

Ngati Turangitukua spokesman Tuatea Smallman said a decision had been made to attempt to freeze all assets owned by the iwi, including the land.

"This is absolutely serious for all hapu members, it has never happened before. It's important we secure the assets of the iwi and try and recover $1.8 million."

Te Whenua Venture Holdings director Dickson Chapman said he would not resign. "The people who called the meetings are not the ones we are accountable to.

"The directors still retain the confidence of parties who are directly involved in the development."

The development had stalled due to the global recession, he said. "It's not advancing as it was 12 months ago. In the past three to six months things have changed hugely."

He was confident the development would eventually go ahead when the economy improved.

The company had not been put into full receivership. The bank was collecting rent from the land and allowing Te Whenua to remain in business.

Mr Prebble said the farm was still making money. "The bank has retained its faith in the proposal by asking the directors to remain."

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