Ngāti Kahungunu plans to purchase controlling stake in seafood company sentenced for under-reporting fish catch

Tuesday, 26 February 2019

Ngāti Kahungunu plans to purchase a controlling stake in Hawke's Bay Seafoods, the company at the centre of large fisheries offending.

Chairman of Ngāti Kahungunu Iwi Incorporated, Ngahiwi Tomoana, said the iwi had been intending to buy a controlling interest in the company at the time it was raided by MPI in 2014.

The raid led to the lengthy court action that came to a head on Monday with a  massive fine of $1.08 million ordered against the company, its related companies, directors and manager.

Negotiations to buy into the company were suspended after the raid, Tomoana said in a statement.

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*** Fishery offending a flagrant case of putting profits ahead of common good

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* Fine in under-reported fish catch should be much less than $1.5million

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* Convictions after long trial

* Massive trial on underreporting fish catches begins**

'However we've maintained our interest in purchasing up to 100 percent of the company to become a major stakeholder and participant in the industry. It has been an iwi strategy for over 20 years and we are positive and confident about the opportunity for Ngāti Kahungunu and our fisheries into the future,' he said.

'If the vision of Ngāti Kahungunu is realised the iwi will be the only iwi to my knowledge, that will own our catching, processing and marketing of settlement assets in the country,' he said.

The company employed more than 250 people 'many of whom are our own people' and 'Ngāti Kahungunu will seek to ensure that environmental, cultural, social and economic benefits are paramount', he said.

A new entity, presently called Takitimu Seafoods, would be formed as part of the purchase, he said.

Tomoana could not be contacted for comment and a spokeswoman said no further comment would be made at this stage .​

The company and directors were sentenced by Judge Bill Hastings in Wellington District Court on Monday.

Initially the company and directors had pleaded not guilty which led to a trial before the judge that lasted nearly a year before they all suddenly pleaded guilty at the end of 2017.

Last year convictions were entered on 85 charges against Antonino​, Giancarlo and Marcus D'Esposito, 22 charges against Esplanade, eight against Ocean and 15 against Hawke's Bay Seafoods of making false statements and the sale of unreported fish.

The charges relate to landings of fish to New Zealand  and their export to Australia between November 2012 and July 2014 where the amounts of bluenose were under-reported before export.

The judge had broken down the fines for each defendants, HB Seafoods fined $410,232, Ocean Enterprises $215,373, Esplanade $141,434, Marcus D'Esposito $126,639, Giancarlo D'Esposito $106,686 and Nino D'Esposito $86,309.

The total amount was $1,086,673. Judge Hastings also ordered the companies to pay $418,500 in redemption fees for the return of the four fishing vessels the court had ordered forfeit to the Crown.

Since 2010 HBS had an agreement to purchase the iwi's annual catch entitlement of about 1000 tonnes of various species in return for providing employment and training for iwi members.

In 2017 the iwi announced it was entering a joint venture with the Tainui iwi and had paid $3.5 m for the 34 metre Glomjford vessel, which it bought in Norway, with the intention of fishing its own quota.