Following recent statements made by elected members of the Wiri Licensing Trust and in the interests of transparency, as General Manager I believe our community deserves information on the below:
- Allegations of audit irregularities:
The Wiri Licensing Trust takes all financial oversight responsibilities with the utmost seriousness. The Wiri Licensing Trust audit is conducted by auditors appointed by the Office of the Auditor General.
Trustees and Management have no ability to interfere with or delay this process as it is prescribed in legislation and externally driven. Trustees have no control over the audit process. Statements that past, current or future trustees have the ability to control this process are false.
Audit update is a regular item included at Trustee meetings; all Trustees have had the opportunity to enquire and engage in this process since 2018. This includes trustees during previous terms.
Having sought legal advice, The Wiri Licensing Trust will not release unaudited accounts.
Since 2019/20 The Wiri Licensing Trust has been unable to provide audited accounts due to reprioritisation of Licensing Trust audits by the Auditor General in favour of government, councils, schools and wage subsidies. This was followed by an extreme shortage of auditors available to undertake the work. This is a national problem that has impacted many Licensing Trusts in New Zealand. In 2024 staff from the Office of the Auditor General attended the National Licensing Trust Conference to discuss this nationwide issue.
This matter was publicly disclosed in our 2019/20 AGM held in late 2024. We also commented on it extensively in our Community Update report for the same period.
Audited Accounts and our Community Update are available here.
Any claims of impropriety or irregularity in our audit process are unfounded and do not reflect the rigorous oversight we maintain. We are persistently engaging with our Auditors to conclude this process to ensure financial transparency.
- The Sale of Land
In February 2024 The Wiri Licensing Trust sold the land at 254 Roscommon Rd for the sum of $4.63m. The Wiri Licensing Trust currently leases the venue (Our Local). The venue is no longer incurring losses for The Wiri Licensing Trust and supports our community. This debt repayment was required to ensure the financial future of the Wiri Licensing Trust.
This decision was not taken lightly, but the proceeds from the sale of 254 Roscommon Rd were used to pay down debt.
Prior to 2018 The Wiri Licensing Trust had no clear financial strategy, during this period $16m of debt was incurred to redevelop property in Manukau with no documented plan to manage interest rate hikes, market downturns or associated risks. Concurrently The Wiri Licensing Trust was incurring losses from its hospitality venues.
In FY2024 more than $1.32m was paid in interest against the loan, without principal contributions while running a high overdraft. We would rather these interest payments were used to support our community.
After the debt repayment The Wiri Licensing Trust has made both principal and interest payments against the residual loan and continues to do so. This is good for the future of The Wiri Licensing Trust as an agent of our community.
The Wiri Licensing Trust operates a profitable commercial property portfolio, a hospitality arm, and has paid down millions of dollars in debt and is now making both interest and principal payments. The Wiri Licensing Trust is once again able to financially rebuild support for our community, and we are returned to our purpose. We should all be proud of this fact.
In conclusion, allegations or inferences of any impropriety in relation to the audit, or that the delay is within the control of any part of The Wiri Licensing Trust are false, inappropriate and disrespectful to the team who have tirelessly worked to improve the financial security and transparency of The Wiri Licensing Trust.
As a team, we remain dedicated to our mission and the community we serve. We are committed to using our resources effectively and ethically to achieve our goals.
We urge everyone to rely on factual information, and official statements from our organisation. We are always available to answer legitimate questions and provide clarity.
Kim Green
General Manager
Wiri Licensing Trust
