DOC chief admits department failed over Far North campgrounds

The Department of Conservation (DOC) has acknowledged it failed to properly oversee the management of three Far North campgrounds for years.

The issues are now the subject of an external investigation with DOC estimating the Ngāti Kuri Trust Board owes $1.8 million in "campsite revenue".

In a letter to the Board, obtained by RNZ under the Official Information Act, DOC's director-general said the arrangement had continued because DOC did not put a contract in place when it should have, did not maintain proper oversight, and did not act on internal concerns raised over a period of years.

"That is the Department's responsibility, and the work ahead is, in the first instance, about the Department putting its own house in order."

RNZ earlier revealed that DOC had launched an external investigation following concerns regarding relationships with iwi and processes such as procurement and debt management.

The external investigation followed three internal reviews about how DOC's Northland region has delivered its obligations under the Te Hiku Settlements; the region's systems and processes including assets, procurement, contracts and debt; and leadership and culture.

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On Wednesday, RNZ obtained summaries of the reviews under the Official Information Act.

RNZ also obtained a letter from DOC's director-general Penny Nelson to Ngāti Kuri Trust Board from 2 June.

Nelson said the letter followed conversations between DOC and Ngāti Kuri over the last 18 months regarding their relationship and the management of Te Paki campgrounds.

Nelson said the relationship between DOC and Ngāti Kuri was "significant".

"I am conscious that it has been under strain, and that some of that strain arises from arrangements and practices that the Department itself should have managed better over a sustained period."

Nelson said a recent independent internal review commissioned by DOC examined the matters that had been subject of discussion between DOC and Ngāti Kuri.

The review had identified a number of issues relating to the operation of three campgrounds: Spirits Bay, Tapotupotu and Rarawa.

She said the review confirmed that since at least 2021, the booking systems for the campgrounds had operated outside department-controlled systems and the revenue collected from campers had been retained by Ngāti Kuri rather than being paid into a Crown bank account.

"I understand that this practice has, in part, reflected Ngāti Kuri's intention to enable reinvestment back into the sites, and I acknowledge that the Department, over a number of years, has neither questioned nor formally documented the basis on which this arrangement has continued."

Nelson said the current arrangement was not consistent with both the requirements of the Public Finance Act, nor the department's obligations under the Conservation Act.

"I want to acknowledge clearly that the position the Department now finds itself in is not one that I attribute to Ngāti Kuri."

She added that the review had also identified matters relating to health and safety at the campgrounds, including DOC's obligations as a Person Conducting a Business or Undertaking (PCBU) under the Health and Safety at Work Act.

Nelson said to address the matters she had commissioned an external review.

"The first phase of this review will seek to establish, on a best-endeavours basis using the Department's own records and any information available to it, the scale and history of the revenue that has been collected at the campgrounds and the position between us."

She said it was not a review of Ngāti Kuri, and the reviewer's terms of reference did not include engagement with, or investigation of, Ngāti Kuri.

"The purpose of this phase is to allow the Department and Ngāti Kuri to share, in due course, a common understanding of the financial position so that we can work together on how it is resolved.

"I would be grateful if Ngāti Kuri were willing to share any information you consider relevant, on a voluntary basis, to assist this work, but I want to emphasise that the review will proceed regardless, on the basis of what the Department holds."

Nelson said DOC needed to ensure a fair process was put in place to look at future management arrangements.

"I am conscious that this letter carries operational consequences and that some of what it sets out will be unwelcome. I want to repeat that the Department's focus, in the first instance, is on its own conduct and on placing the arrangements between us on a sound and lawful footing.

"The Korowai relationship is one I value, and the work ahead will be undertaken in that spirit."

In response, the Board thanked Nelson for her letter and welcomed DOC's decision to commission an external review.

"We are optimistic going into this about what can be achieved and will be guided by our consistent focus on ensuring Ngāti Kuri can continue to exercise its kaitiakitanga responsibility and Treaty settlement commitments are upheld."

The reviews

A summary of the independent internal review said it identified a "set of connected leadership, governance and control weaknesses" within the Northern North Island region.

The review found conflict of interest declarations were low in the region despite "the presence of potential or perceived conflicts that would reasonably be expected to be declared and actively managed".

"Consistent processes to ensure actual, potential, and perceived conflicts are identified and managed appropriately were absent."

Since 2018/19 no formal contract had been in place with Ngāti Kuri to manage the campgrounds.

Procurement, payment controls and policies in Kaitaia were not always applied consistently, and purchase orders were "repeatedly raised late or not at all".

A summary of the Northern North Island leadership and culture review said confidence in regional leadership was "low".

The review, which 105 staff responded to (about 73 percent of the total workforce) also said concerns about bullying, intimidation and other "unacceptable behaviours" had been raised.

"These included reports of raised voices, undermining behaviour, and use of positional authority to silence or marginalise others.

"A key issue identified was the lack of visible challenge or consequence, which has contributed to the normalisation of such behaviours in parts of the region and reduced staff confidence in reporting concerns."

Performance management and accountability was also "inconsistently" applied across the region.

The summary said the cumulative impact of the issues was "significant".

Another review, called the Te Hiku reset review, looked at identifying where DOC needed to change or improve the way it worked with Te Hiku iwi in implementing Treaty claims settlement obligations.

In relation to leadership, the review found there was no "clear, shared strategy or plan for implementing Treaty settlements".

It also said DOC systems were "experienced as slow, complex, and misaligned with iwi aspirations and timelines".

"Procurement, permissions, and funding processes create barriers rather than enabling delivery."

The review had several recommendations including strengthening regional and local leadership and pausing non-critical Treaty and statutory work.

DOC's response

In a statement DOC's deputy director-general public affairs Sia Aston said DOC was taking the concerns identified "very seriously".

The independent investigation was underway, and being led by Deloitte.

"We're grateful Ngāti Kuri have agreed to contribute to this process. It is important to note here, that DOC has described revenue collected for campgrounds as a debt, but this is in dispute."

Aston said senior leaders across DOC had agreed to an action plan to address the issues identified in the internal reviews and were reporting weekly on progress to the director-general.

"We have also taken immediate steps to get tidy on conflicts of interest, procurement, debt collection, health and safety, permissions, and leadership and culture in Northland."

This included bringing in "strong, experienced leaders" to embed a new leadership plan as well as implementing a new regional operating model.

DOC has also set clear expectations for leaders and staff and ensured DOC policies and procedures were upheld.

"We have committed to completing the action plan over the next 12 months."