‘Poor management’ linked to failure of business
A business set up by the man at the helm of a Taranaki iwi which lost the bulk of its $20 million treaty cash failed because of poor management, a final liquidator’s report has outlined.
And as a result the liquidated venture, five unsecured creditors were left out of pocket to the tune of $196,555.
In March 2016, the High Court placed Septic Solutions Taranaki Limited into liquidation.
The sole director of Septic Solutions was Greg White, the of former
Tama.
At the time, it was established that money from the Nga¯ti Tama settlement had been invested in the company, which operated as a septic tank cleaning and port-a-loo hire business.
White was at the helm when the iwi lost the bulk of its Treaty of Waitangi settlement money due to a series of failed investments.
More recently, he has acted as the key negotiator representing Te Ru¯nanga o Nga¯ti Tama in talks with New Zealand Transport head of
Nga¯ti
Agency regarding a compensation package for the iwi in connection with the $200m Mt Messenger bypass project.
The potential deal includes a $1.2 million section for use in a possible land swap, business opportunities for the iwi, along with a significant sum of cash, the amount of which has not been publicly disclosed.
In the final report of liquidators Wendy Somerville and Malcolm Hollis, dated November 6, it explained how the company ceased trading in
December 2015 due to poor management and the loss of key contracts, which resulted in cash flow problems.
It was subsequently placed into liquidation because of outstanding tax liabilities. The statement of claim filed before the company was liquidated stated that it owed $35,477.03 to Inland Revenue for unpaid GST, PAYE and income tax.
As part of the liquidation process, three vehicles, a truck hose extension and five port-a-loos were seized and sold off in May 2016, followed by a further 18 porta-loos the following year.
The final liquidators’ report said two preferential claims totalling $17,726 were received relating to claims of unpaid GST, PAYE and applicant creditor costs. It said the applicant creditor costs were paid in full while a distribution of 20 cents in the dollar was paid to settle the preferential claims. Five unsecured claims were made, totalling $196,555, but no distribution of funds was made towards this.
An intention to remove Septic Solutions from the Companies Register was also signalled in the report.
Attempts to contact White about the final liquidators’ report have so far been unsuccessful.