The Auditor-General has ordered trustees at a development trust on the West Coast to work together or step down.
Development West Coast was set up by the Government in 2001 to distribute $92 million, to compensate for a decision to stop native logging on Crown land.
Results of an inquiry have been tabled in Parliament. The inquiry into claims of conflict of interest within the trust rejected many accusations, but found an atmosphere of suspicion has bred hostility between trustees.
Assistant Auditor-General for local government, Bruce Robertson, says the trust will be unable to foster economic prosperity until its trustees find a way to cooperate.
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