INTERNAL AFFAIRS A Te Tari Taiwhenua The Christian Chur rch R Community Trust. ee Charities Servi tigation oe OF ay ud sees oe AO g x oO ox’ i‘Appendix Page 2 Table of Contents 1. Executive Summary . 2. Charity Background... Previous review of the Trust 3. Initiation of the current investigation Joint Agency Approach. Issues & Purpose of the Investigation .. Evidence obtained during the course of the investigation .. Nom Pp Anal Finandal Review Allegations of serious wrongdoing... Additional issue 8. ConclusionAppendix Page 3 Investigation The Christian Church Community Trust Registration Number CC25088 Date Assigned 20 April 2015 [Date Completed 8 October 2016 Investigator(s) Paul Budd, Senior Investigator (Lead Investigator) Hammond Rees, Senior Investigator Fiona Milne, Investigations Accountant Svetlana Malivuk, Investigator Andrew Grieve, Investigator JessHill, Investigator 1, Executive Summary 1.1. The current investigation into the operation of the Christian Church C Trust) commenced in April 2015 following media reports detail leaving the community. The persons interviewed made vario\ i aration c e focus irregularities, enforced marriage, physical and sexual abi a controlling environment. 1.2. Charities Services had previously conducted Th the 2012/2013 review wasto determin, jom through its activities sufficient to demonstrate pi ththe case law. 13. The parameters i scoped at the onset via an extensive investigation i fat only information in relation to serious dba und is Act 2005 (the Act) would be sought. above jined that any disclosuresin relation to sexual assault or ical eu je referred in the first instance to the New Zealand Police as ole ycetlures were setin place to ensure a smooth transition in the case of Giminal nature. Charities Services did have regard to such allegations a direct relationship to potential serious wrongdoing. investigation Charities Services obtained information in order to determine jerthe Trust, or anyone associated with the Trust, has engaged in serious wrongdoing. arities Services also visited the Trust, contacted the Trust on numerous occasions and obtained information from them on how the Trust was being operated. 16. Charities Services also undertook interviews with all of the Trust’s current trustees, being Fervent Stedfast, Enoch Uprightand Howard Temple (the Trustees), in order to provide them with an opportunity to respond to all the specific allegations under investigation. 1.7. Priorto interviews with the Trustees information obtained by Charities Services indicated that, the Trust and the persons associated with the Trust, in particular the Trustees, had engaged in conduct that may constitute serious wrongdoing under the Act. Atthe interviews the Trustees provided information that mitigated some of the issues under investigation however Charities Services remains of the view that the Trust and the persons associated with the Trust still may have engaged in serious wrongdoing under the Act when it comes to other issues under investigation.Appendix Page 4 1.8. Charities Services therefore considered whether the conduct of the Trust and the persons associated with the Trust should be managed by issuing a warning notice under section 54 of the Act. It was determined however that due to the high level of cooperation by the Trustees with Charities Services that a letter notifying the Trust of issues that Charities Services had identified together with the Trustees’ agreed resolutions to these issues is to be issued to the Trust which is consistent with the educative harm reduction approach under the Terms of Reference of the Joint Agency Approach (which is discussed further below). This letter will require the Trustees who are formalising all their governance policies and procedures to provide Charities Services with copies of the same. 19. It should be noted however that if referrals made to other members of the Joint Agency ‘Approach amount to the Trust or any person associated with the Trust being prosecuted for crimes or any other offences, Charities Services may open a new investigation into the operation of the Trust in order to assess its eligibility to remain “Re: charitable entity under the Act. ok Os 2. Charity Background ao asa Vos §n community near i we See techn Church 2.3, The purposes of the Trust, SS my Cor Sok laration of faith “What We Believe”. indmentand principle ofthe New ns Rees et ‘above object to provide the necessary means and fawn wher SS enenaie Christian Church Communities together with Be who wish to become members, may live togetherin their family Noss ‘Church Communities, supporting themselves by their own labours, ingone toner needs equally, and having allthings in common. « 'o provide for the Christian and generaleducation of all the children (and adults as os appropriate) ofthe Christian Church Communities in both secularand spiritual © 2.1, The Trust was i charitable entity on 30 May 2008. 2.2. The Trust’s primary activity is operatis Greymouth, often referred to as Gl matters according to all the commandments and principles of the New Testament and the declaration of Faith, "What We Believe” (as amended from timeto time). 9.4. To provide for the preaching of the Gospel, for the education of the public, andif at any time the Leaders think it good to do so, forthe establishmentin other places of other local Christian Church Communities founded on the same principles to those ofthe then existing Christian Church Communities. 9.5. To help any person or entity thatis nota member or a part of the Christian Church Communities in any way the Board sees fit. 9.6. To undertake any acts or things which havea charitable purpose in accordance with the law of New Zealand as specifically defined in section 5(1) of the Charities Act 2005 as the Board sees fit. 2.4. The Gloriavale Community is an isolated Christian community that makes efforts to be self- sufficient. The Trust has established a number of sources of income based upon commercial activities such as farming, aviation, protein production, private hunting, midwifery, energy production and oil exploration.Appendix Page 5 2.5. The Trust is governed by a board, whose members are three of the male elders of the community. Hopeful Christian, whois the founder of Gloriavale and the Overseeing Shepherd, retired frombhis role of trustee backin 2010. As Overseeing Shepherd, he retains the powerto reappoint himself to the Board under clause 4.1. of the Trust Deed, as well as the power to appoint Trustees under clause 3.1.3. As well as the Trust, the Gloriavale Community utilises eightlimited liability companies that run the Trust’s commercial activities), anda partnership. ‘The Trust also operates three early childhood education centres and a private school all of which are funded by the Ministry of Education. 2.6. The Trust owns freehold farmland in the Haupiri Lake district to the value of approximately $10 million, The value of the Trust’s buildings, vehicles and equipment is approximately $20 million and is not subject to any finance. ‘The community is believed to consist of between 550 and 600 people‘ whoare all expected to agree to a set of doctrines known as “What we believe” which contains Community leaders’ interpretation of the key doctrines of the Chri rules by which community members are expected to abide “Declaration of Commitment to Jesus Christ & His Church and Corn! vate’ (TH Declaration of Commitment) thatsurrenders all their saan money; the Gloriavale Community and the Trust. = aw 2.8. The specific activities within the Gloriay; re. ee i pthe community leaders that consist of “Shepherds” Trustees are key members of the Shepherds and Se: a 2 S idership ie rules of the Gloriavale Community contained within-the "What we beliéve’ docuient and meet frequently to control and coordinate, within the-Glon immunity. o i 29. Themembersof théG mi Se ee rrnealiwrkorthe goede the Gloriaval wi sa pm or salary. Any income received by individ bi “om is paid into their individual bank account which is them dohatedto the Tr iccounts held for the Gloriavale Community to pay for tionsitothe Christia munity in india as well as food, clothing, laundry and medical Or Ne i Provided for them by the Trust. Weekly living expenses are 8H fperson.* s6(c) od © There are approximately 55 families with an average of 8 children each. ? Charities Services was advised by the Trustees that there Is essentially no differencein position or rankof Servants and Shepherds. ‘There are currently 16 Servants and Shepherds appointed, with one Servant and ‘one Shepherd responsiblefor each floor of the four livingblocks at the Gloriavale Community. 3 ithas been alleged by the former members of the Gloriavale Community that Servants and Shepherds also sit ina disciplinary rolespending many hours examining suspected rule breaches by the members of the GloriavaleCommunity and deciding on sanctions and punishments to be imposed * this figure was obtained from calculations supplied by the Trust which have been corroborated from bank accountanalysis by the Investigations Accountant. 36(c)Appendix Page 6 6(c) 2.11. We note the Trust does not owe any money to external agencies including financiers. Previous review of the Trust 2.12. The previous inves tion into the operation of the Trust commenced on 27 January 2012 and closed on 2 December 2013. s6(c) This Investigation wasimi n in-depth: charitable purpose review and did not involve an investigation if e ie Trust Of at persons associated with the Trust had engaged in seriou: eda “et Act. 2.13, The in-depth charitable purpose review condi advance a publicbenefitconsistent with t 2.14, During the course of the previous i S tial munity did e500 ent of religion. Tru tit neither controlled, nor provided any financial support ristia in India whatsoever.” The Trust did however advis vices t jay be provided to the Christian 3s Community in india frome bers’ own: finds. 5 JUN} Say programme ran a report detailing an increase in persons le Community. The persons interviewed for the show made allegations ige, physical and sexual abuse, forced separation of families and a jurther reports on Campbell Live and in local and national newspapers saw ed disclosures of concerns around the Gloriavale community, 36 Bellowing the media reports, Charities Services made an initial assessment and determined Oo that the disclosures made could potentially constitute serious wrongdoing under the Act.® In ~~ particular, Charities Services considered the alleged conduct could be considered a serious risk to the public interest and indicated financial and governance irregularities, Further information obtained during the assessment phase supported possible serious wrongdoing regarding financial irregularities. s6(c) 7 a christian community operatingin india thatis based on the same religious doctrines as the Gloriavale Community * itis not unusual to open an investigation following media allegations/stories asitis within our mandate to ensure public trustand confidence in the charitable sector. 5Appendix Page 7 3.4. Charities Services liaised closely with the New Zealand Police who were supportive of Charities Services’ intention to investigate the concerns within the Gloriavale Community. The New Zealand Police (Police) advised that unless people were willing to make a complaint and they obtained specificevidence of criminal offending, they could take limited action, They advised that the Gloriavale Community urged members to distrust Police. 35. Charities Services and the Police agreed that Charities Services is not the appropriate agency to investigate serious criminal offendingand processes were established with the Police that if such disclosures were made within Charities Services inquiries, they would immediately be referred to the Police. 3.6. Wheneverinformation was gathered during the investigation, Charities Services considered whether it was within the mandate of Charities Services or another agency, and where appropriate referred it the relevant agency within the Joint Agency Approach (discussed Joi sie mn a \ 3.7. In addition to the media attention that surrounded leavers gf the Gloriavale Com by mid May 2015 ithad become apparent that there wer indicatjons‘end allegations \SsServices’ invest iis led to of potential criminal offending being disclosed t a request from Charities Services to the Government approach to the Gloriavalecci flow of information and to ensure areas where they may have legal i residents of the Gloriavala men parti were supportive rate oe mee ne )~ insider an all of ise the interagency ally informed around the ongoing safety of the n that may be at risk. The Police involvement of the other Government agencies as ince 3.8. OX . XG ~ s6(c) & \ e Police and MSD led to the MSD being nominated as lead agency in roach. feriding against individuals by members of the Gloriavale Community, to assess the © continued suitability of the Trust to remain a registered charity, and to facilitate the ongoing \ engagement with, and education of, the members of the Gloriavale Community by appropriate agencies around agreed areas, 4, Issues & Purpose of the investigation 4.1. The purpose of Charities Services’ investigation into the operation of the Trust was to determine whether the issues identified constitute serious wrongdoing as defined under section 4 of the Act being: (2) anunlawful or corrupt use of the funds or resources of the entity; (b) an act, omission, or course of conduct that constitutes a serious risk to the public interest in the orderly and appropriate conduct of the affairs of the entity; (c)__ anact, omission, or course of conduct that constitutes an offence; and (d) an act, omission, or course of conduct by a person that is oppressive, improperly discriminatory, or grossly negligent, or that constitutes gross mismanagement,‘Appendix Page 8 4.2. In addition to considering whether the Trust or any person associated with the Trust has engaged in serious wrongdoing, the purpose of the current investigation was also to determine whether the Trust is practising good governance and management under section 10{a) of the Act. Section 10(a) of the Act provides that one of the functions of Charities Services is “to educate and assist charities in relation to matters of good governance and management, for example: (i) byissuing guidelines or recommendations on the best practice to be observed by charities and by persons concerned with the management or administration of charities: (il) byissuing modelrules: {e) by providing information to charities about their rights, duties, and obligations under this Act and other enactments” 4.3, Takinginto account the mandate of Charities Services under the Act and the\stfies put in the media, discussions with former members of the Glori ity? nde c ale governmentagencies Charities Servicesidentified the seoee 0 for of the investigation: * Financial practices relating to members’ © Financial practices set up to facili © Funds being vse for non- Gloriavale, and ust ep ‘anend. Ifthe offender would not do this, shee th 23 Would advise the Police or other appropriate auth ro offend the Trustees £93 len per: ease ng so. The Trustees would not want the Soe OS ind then continue to physically assault other people in 1 Ne Beso We. been physically assaulted by this offender within \S Netoria Geren wished to do so, they would themselves be free to A SS lice or other appropriate Agency and advise them of what had been \ the offender in such a case later came to true repentance, and a complete forsaking of Oo physical assault , then that person could approach the Trustees and request to be allowed to return to Gloriavale, and his or her request would be given due consideration. How the Trust Deals with Complaints of Sexual Assault within the Community If the Trust receives a complaint of sexual assault within the Community, it 1. Make investigation as to the circumstances and severity of the alleged assault, including: 2. Speaking with: a. the person who made the complaint b. the person who was allegedly assaulted c. the person who allegedly made the assault d. any witnesses to the alleged assault 3. Assess the findings of the above investigations and come to a conclusion as to the circumstances, severity and frequency of any actual assault(s).Appendix Page 31 4. Ifitis concluded that there was an actual sexual assault, gather the involved parties together, and stress the seriousness of, €. Disobeying the commandments of the Bible and the teachings of the Church and Community against such sin. f. Breaking the law of New Zealand. 5. According to the teachings of the Lord Jesus Christ and His apostles in the New Testament, the Trustees will seek to: 8. Bring the offender(s) to genuine repentance for their transgression towards the person whom they had assaulted, and a complete forsaking of this, and likewise for breaking the law of New Zealand. h. Bring the person who had been assaulted to genuine forgive se the 5 person who had assaulted them, even as Jesus sare ws our debts, as we forgive our debtors...For if ye fo, 2 rem yOur heavenly Father will also forgive you: but if: pee ‘men. Cao neither will your Father forgive your tre atthe al i. Watch carefully afterwards and, sce CoM ault has come to a complete end. S 6. If the offender nevertheles: anton exuall je or more persons wi Community, and will we pore: $0, o,and dees eed the requirement of the Trustees not aten Sx Shdtbthér shepherds and servants ofthe Church would have eno the Church and Community at Gloriavale and no lont Pere (0 Our policy, ‘People Leaving and Returning to inthe oe person to go to the police and confess. jeen sexually physically assaulting someone within Gloriavale, and has ee the Trustees attempts to bring this to an end. if the offender would Z & ‘authority of what the offending person had done, in spite of every effort of the Trustees © to guide the person to cease doing so. The Trustees would not want the offender to go out of Gloriavale, and then continue to sexually assault other people in general society. 8, If the person or persons who had been sexually assaulted by this offender within Gloriavale in these circumstances wished to do so, they would themselves be free to contact the Police or other appropriate Agency and advise them of what had been happening. 9. Ifthe offender in such a case later came to true repentance, and a complete forsaking of physical assault , then that person could approach the Trustees and request to be allowed to return to Gloriavale, and his or her request would be given due consideration. Obtaining Independent Legal Advice Its, and has for some time been, the policy of Gloriavale Christian Community, firstly, if any person under the age of 18 years comes forward and asks to be able to make a Declaration ofAppendix Page 32 Commitment to Jesus Christ and His Church and Community at Gloriavale, that they will be given a shortened Declaration of Commitment that includes statements of our faith, but excludes all reference to houses, lands, assets or money and legal matters, which is appropriate for them to make as minors. No independent legal advice will be required for such a commitment made by a minor. and has for some time been, the policy of Gloriavale Christian Community, secondly, if any person of 18 years of over comes forward and asks to be able to make a Declaration of Commitment to Jesus Christ and His Church and Community at Gloriavale, that they will be required to first obtain independent legal advice for doing so from a lawyer other than our normal Community lawyer, before making that Declaration of Commitmi &E The same policy applies if any person wishes to becomes rd a) cial rarer partnership, Christian Partners, ee ss EX$ \~ Having a Bank Account oO It is, and always has been, the policy of Gli rt ©) no member of the Community can have a bank acc jid jas attended the local branch eo do so, and taking with "and has then met the appropriate bank da ted ae esslof opening a bank account and signed all the i ank officer. The only exception is if the bank officials néto G = ‘Open bank accounts, which happened once before when a bank accounts at the one time. itis EN ES for any person to open a bank account without going through the entire a on doing so in the presence of a senior bank officer, and personally signing all ay jired bank documents and submitting all required Identity and address proof Meeting and Communication Updates The Trustees will ensure that there will be meetings as needed of all persons having bank accounts to review any necessary matters pertaining to those bank accounts. The Trustees will Use communal meal times, or arrange any special meetings needed, and post any necessary material on the Community Notice Board, to inform the Beneficiaries of the Trust of the Trust’s activities and administrative matters, No Trust Financial Assistance For The Indian Christian Community The Trust does not and never has provided any financial assistance to the Indian Christian Community. Financial assistance for the Indian Christian Community comes from the personalChari ‘Appendix Page 34 INTERNAL AFFAIRS yy. ity Registration Number: CC25088 Te Tari Taiwhenua 17 October 2016 Attention of: Fervent Stedfast The Trust Board The Christian Church Community Trust (CHARITIES SERVICES ‘0 Victoria Set, Welagton Son New Zessnd Faesimite o54 43823595 189 Heaphy Road Freephone 0508242748 ROL Webi wan ingot. we charis govt Moana 7872 Also by email 39(2\(a) 39(2)(a) AN okt Dear Fervent Stedfast and the Trust Board, Co) ey \y This letter is to provide formal notification to you that. nt oF (fais ~ Charities Services ("Charities Services”) has closed the investi the 0 hristian Church Community Trust ("the Trust”) which was.o} tion received regarding possible serious wrongdoing under the Charities AP-2008 ("the Ag)». Undei trustees’ duties in relatio that might amount t S Nia the allegations in light of the because any specific allegations ferred to the agencies (i.e. Police, Child Youth i with them, as they see appropriate. F our mandate, Charities tions referred to other agencies should result in either the any of the ution of offences that represent serious wrongdoing under the Act, further or pre Se (Ce actiofi wolitd’be considered by Charities Services. Chari So ishes to acknowledge the assistance and cooperation that the Trust and the munity ("the Community”) have provided to Charities Services during the tigation. As you are aware, Charities Services raised a number of issues with the Trust that were (Oise ified during our investigation. itis noted that the Trust has engaged the services of a number of professional advisers and responded effectively and positively to their advice. This has involved changing the makeup and governance of the Trust, and developing and formalising policies to reflect the Trust’s commitment to achieving better governance and management. The current trustees have informed Charities Services of the following recent actions taken to improve governance and management: 1. The current Trust Board membership will be expanded from three to five, to include two new additional trustees from the “younger people” of the Gloriavale community (the community). 2. Two external advisers to the Trust Board will be appointed ~ a local solicitor and a local businessman have been approached and have agreed to perform these roles. 3. Regular Trust Board meetings will occur to allow the external advisers to attend and contribute. 4, Policies that only existed verbally, and new policies responding to the issues raised by Charities Service’s investigation, are currently being formalised into written documents, Page | of 3Appendix Page 35 These will be provided to Charities Services when completed, and refer to many of the actions described in the following points. 5. Ifa member of the community states that they wish to leave the community, they will be asked to select a trusted support person who will accompany them to meetings with Servants and Shepherds. The person wishing to leave may also be supported by family members in any meetings. 6. if a person decides that they must leave the community, the trustees will ensure that the person receives sufficient funds to assist them, reflecting their contribution to the ‘community and any salary that they earned. In addition, the person will be asked where they wish to go and will be provided with travel fares/tickets to reach their destination. All personal documents such as passports, birth certificates and proof of earnings will be provided to them. 7. Any member of the community who leaves or has previously chosen to leaye'is not shunned by the community and the door always remains open to that person to vided t agree to abide by the rules and beliefs of the community, Cc 8 Any leaver may telephone family or friends provided that \frieha wishes to speak with them and itis convenient. have with\é towards the 2 nee ‘ waver rovided they behave S nid debated provi (er ‘opposing opinion to the beliefs ded a5 a Jingelising community members to an lat whic ity is founded upon. as Oo aa milly member, 9. Any leaver may return to visit the community pro 10. Any leaver may return to join the co 11. Theology may be discuss of the community alternative set of(balie 12. Policy tovd the Ti fh any complaint of physical assault within the ti SS deals with any complaint of sexual assault within the S nity malised. oe not permitted within the community. 1 ° 15, fers of the community sign the Commitment Document they will meet with a aX receive clear legal advice as to what it means to give their consent by signing. —\ Geni members of the community will be aware of whether they have a bank account. Bank © accounts can only be opened by the individual attending a bank branch in person and — producing identification. 17. The trustees will use communal meal times to inform the beneficiaries of the Trust's activities and ad 18. The Trust does not provide financial assistance to the Indian Christian Community. Financial assistance is provided to the Indian Christian Community from private bank accounts, holding the tax paid income of individuals, who are members of the community. These accounts are private accounts outside of the Trust and are operated independently of the Trust. istrative matters. Charities Services continues to hold concerns around the Sharing Accounts and the Gloriavale Christian Community Account not being included in the consolidated accounts of the Trust and being considered independent of the Trust. This is because we consider the Trust may be in a position of control over the activities in the Accounts, and according to accounting standard PBE-IPSASE (Consolidated and Separate Financial Statements), this would mean the Trust would need to report ‘on this activity. We consider this because the signatories to the account are the trustees of the Trust, and appear to operate for the benefit of the purposes of the Trust. Page 2 of 3Appendix Page 36 It is noted that this understanding exists after the Trust was advised by Marshall & Heaphy Accountants, RSL Auckland and Auditors Grant Thornton. We accept the Trust has taken advice on, this matter; however Charities Services will review the Trust’s consolidated accounts under its routine assurance checking process for the year ending 31 July 2016, established to assess if registered charities are complying with the External Reporting Board (KR) requirements of New Reporting Standards. If Charities Services considers this practice does not meet the requirements of the New Reporting Standards, we may inform the Trust in relation to its ongoing reporting obligations. We also recommend the Trust remove the three current trustees as signatories of those accounts to further demonstrate the relative independence of those accounts and that the Trust does not have control of the accounts. Sto require the aa to issues raised by developing and formalising policies to ma better governance and management. We are satisfied th é itation of the proposed policies, the Trust's activities would not S Sing notice, or proceeding with further compliance AD The Trust was advised that under the Act, Charities Services has delegated po Trust to address issues around the trustees’ duties for governance and mani through issuing a waraing notice under section 54 of the Act. Charities We still expect that the formalised pol sine “ of Charities Services by Monday 28 November 2016. ase < in ‘ae months of their appointment, the new Trust Board “es nas arities Services Charities so es si moni O) Ns the Trust and is prepared to offer support or advice as ak to iS to any of the detail in this leter please contact me on Gx - ane Charities Services Department of internal Affairs Page 3 of 3