Dr Reedy defends loan actions

Press, 19 December 1986, Page 4

Dr Reedy defends loan actions

PA Wellington The Secretary for Maori Affairs, Dr Tamati Reedy, yesterday defended his actions in negotiating a $6OO million loan through a Hawaiianbased middleman. The discussions were only preliminary and there was nothing hard and fast in them, Dr Reedy said in an interview with the “Evening

Post.” He said he had been keeping the Minister of Maori Affairs, Mr Wetere, verbally informed about the discussions. Dr Reedy could not give the date of when he first told Mr Wetere about the matter, but he said neither he nor any of his departmental officers should take the blame for an affair which he described as a storm in a

teacup. Dr Reedy met the chairman of the State Services Commission, Dr Rod Deane, yesterday to discuss the row. Dr Reedy was accompanied by his solicitor. Although he had been discussing the loan deal before any Treasury warning, Dr Reedy said he knew he did not have the authority to conclude a loan. He said he made

the conscious decision, however, to investigate the matter. “I knew if there was a loan to be raised then certainly the Ministry of Finance is the only one that is authorised to do that. “I didn’t need Treasury to tell me that, but we were at least investigating the possibility of this money coming here and if it was going to materialise

then certainly the Minister of Finance was the appropriate person to * have brought this money into the country.” Dr Reedy added that he did not feel he had done anything wrong or anything to be ashamed of — “I still feel that we needed to find out more ... investigate the proposal ... before firming it up,” if it was to be firmed up.