Southland Regional Development Agency board member in spotlight

Tuesday, 7 May 2019

One of the newly appointed Southland Regional Development Agency board members, Maria Pera, was in 2006 found to have spent public money inappropriately.

Murihiku Whanau Services, of which Pera was a trustee, had a contract with the Southland District Health Board to run the Family Start programme in Invercargill.

But controversy erupted after then Family Start manager Nobby Clark approached the health board in 2005 with concerns and suggested an audit of Murihiku Whanau Services accounts be done.

Following an audit and investigation, the health board found the three trustees of Murihiku Whanau Services inappropriately spent $340,000 of public money, much of it for personal gain but it said there were no instances of fraud, theft or misappropriation involved.

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Pera was one of the three trustees.

Then health board interim chief executive Nigel Murray prepared a report criticising the trio. 'In the opinion of SDHB the actions and behaviour of (the trustees) were highly inappropriate … they generally demonstrated poor judgement, lack of stewardship of public funds through deficient business practice and limited understanding of the requirements to act prudently in the discharge of the fiduciary and employment obligations.'

At times the trustees had derived personal benefit at the expense of advancement of the Invercargill Family Start Programme, he said in 2006.

Pera, also a SDHB board member at the time, resigned from the health board as a result of a mediated settlement.

In a statement from the three trustees at the time, they said they were particularly disappointed at the allegations related to personal gain.

All payments made to the trustees had been independently reviewed and assessed by an independent chartered accountant and had been deemed to be appropriate, their 2006 statement said.

Pera, when contacted on Tuesday and given the opportunity to respond to questions about the matter and her appointment to the new Southland Regional Development Agency board, declined to comment or answer questions.

Nobby Clark, when approached for comment, said he was surprised Pera had been appointed to the board of the Southland Regional Development Agency, 'given the outcomes to the Family Start audit'.

The appointment of the Southland Regional Development Agency board was carried out by the Joint Shareholders committee.

Gary Tong, Southland District Mayor and chairman of the joint shareholders committee, said on Tuesday morning he was unaware of the matter relating to Pera in 2006.

He said he would look into it.

He rang after 5pm to thank Stuff for bringing the matter to his attention and asked for more time to respond.

'I will be doing urgent follow up inquiries.'

Tong said it was inappropriate for Southland Regional Development Agency chairman Ian Collier to respond to questions about the matter.

Collier, on Tuesday night, said it was inappropriate for him to comment at this stage because the board had been appointed by and through the shareholders committee.

'It would only be appropriate they [shareholders committee] address it rather than the board itself, at this point,' he said.

The matter had to go through due process.

'It's absolutely appropriate we take this matter seriously.'