With trustees failing to account for trust money received, making payouts in cash with no receipts, and some enjoying personal loans with no obligation to repay; Lisa Doig as beneficiary of a Taupo Maori trust called trustees to account. The Maori Land Court ordered a meeting of all beneficiaries, with the Court indicating removal of trustees and orders for repayment is in the offing.
The Alice Kahia and Rawiri Kahia Hapeta Whanau Trust is unusual in having a narrower range of beneficiaries than is common for a Maori trust holding substantial assets. Beneficiaries are direct descendants of Alice and Rawiri.
The full extent of trust assets is not a matter of public record, but the Trust holds shares in Contact Energy and has interests in land situated near both Turangi and Rotorua. Annual income exceeds $99,000.
The Trust was established in 1995. There are currently eight trustees.
In 2021, beneficiary Lisa Doig asked the Maori Land Court for a full review of Trust operations. Her questions have gone unanswered by trustees since 2003.
A court-ordered investigation found little or no supporting documentation for payments made by trustees, plus evidence of some trust revenue being paid directly into trustees’ personal bank accounts.
There was evidence of some trust transactions being agreed by sub-sets of trustees, without the knowledge and approval of other trustees.
Also of concern was evidence of at least three current trustees having previously borrowed trust funds with no apparent obligation to repay. In addition, some trustees have received grants with no record of the amounts given, why the grants were made, or who approved payment.
All current trustees, in some way, have breached their trustee duties, Judge Warren said. These failings went beyond technical breaches of the law, he said.
If whanau choose a trust structure to manage their assets, then they must comply with trust law rules, he said.
Lack of accounting records meant an audit could not be completed.
Judge Warren was critical of trustees not responding to Ms Doig’s requests for information.
A court-ordered meeting of Trust beneficiaries was ordered.
Judge Warren asked beneficiaries to advise whether current trustees should be removed, who might be suitable replacements and whether current loans to trustees should be written off, or repayment terms imposed.
While he will be guided by beneficiary views, Judge Warren made it clear he is not bound by their decisions.
He ordered all trust funds be frozen pending a final decision.
Doig v. Kahia and others – Maori Land Court (3.07.25)
25.151