Trustee in gun over cash deal

A Maori leader has lost his place on two land trusts after taking $2000 after helping sell a collective-owned property well below its accepted value.

Weo Maag, a member of the Guardian Establishment Committee which is to oversee management of the Waikato River, helped Kelvin Stanley draw up an application to buy a section of land near Benneydale.

The land belonged to Tiroa E and Te Hape B Trusts.

Mr Stanley offered $15,000 for the property which had a four-bedroom house on it. The trustees accepted the offer in March 2006 and deal was finalised by October that same year.

Mr Maag accepted $2000 from Mr Stanley after the completion of the sale – a move which cost him a place on the governing board of the trusts last week.

In minutes of that meeting Mr Stanley admitted he had given Mr Maag the money because he had helped with the sale of the house.

"It is all true, I did pay $2000 to Weo to make this deal happen for me. Another person actually put in a price for this house... I paid him $2000 to make sure I got the house."

Mr Maag was not re-elected as a trustee. Mr Maag, also a member of the Maniapoto Trust Board, declined to comment when contacted by the Times.

According to documents from the Maori Land Courts some months after the completion of the sale, Mr Stanley approached Mr Maag and placed $2000 in his jacket pocket.

"Mr Maag says that he told Mr Stanley that he could not accept the money for his assistance with the house as he did not wish it to be misconstrued," the documents said. "However, Mr Maag said he would accept the money on the basis that Mr Stanley purchased a rimu table [from him]."

Mr Stanley, however, never took possession of the table and Times understands it still remains in Mr Maag's workshop in Te Kuiti.

The trust found out about the $2000 payment on April 3, 2009, and the issue was referred to the Maori Land Court.

In May 2009 Mr Stanley sold the Benneydale property, which had been increased in size by an extra 1903 square metres, for $110,000.

In a reserved judgment, Justice S Milroy said an allegation that a trustee received a "kickback" to ensure a deal that was favourable to one of the parties was "a serious allegation".

But she accepted that the agreement between Mr Stanley and Mr Maag was entered into after the sale was completed.

That said, Mr Maag must also accept that trustees must adhere to high standards of loyalty to the trust, if not they would be held liable and removal was a distinct possibility, she said.

Justice Milroy directed Mr Maag to pay $2000 to the trust. The trustees were also directed to make full disclosure to their accountant and obtain tax advice in respect of the transaction and the business structure which would best suit the trusts' circumstances.

- © Fairfax NZ News