The Department of Conservation has admitted it did not properly manage its oversight of three Far North campgrounds for multiple years, with an external probe now examining the breakdown.

DOC estimates Ngāti Kuri Trust Board owes $1.8 million in campsite fees from Spirits Bay, Tapotupotu and Rarawa. The trust board disputes the claim.

Director-general Penny Nelson wrote to the trust board on 2 June outlining how the department had neglected to establish contracts when necessary, allowed oversight to lapse, and ignored staff concerns raised repeatedly over multiple years. Since at least 2021, booking systems operated beyond DOC's control, with campers' fees retained by Ngāti Kuri rather than deposited into Crown bank accounts—a model partly reflecting the trust's objective of channelling resources back into the campgrounds. The arrangement is inconsistent with Public Finance Act requirements and DOC's Conservation Act duties. No formal contract has existed with Ngāti Kuri since 2018/19.

"That is the Department's responsibility, and the work ahead is, in the first instance, about the Department putting its own house in order," Nelson said. She added: "I want to acknowledge clearly that the position the Department now finds itself in is not one that I attribute to Ngāti Kuri."

Deloitte is conducting the external investigation, with initial work focused on using DOC's own records to determine the scale and history of revenue collected. The reviewer's mandate bars direct contact with or scrutiny of Ngāti Kuri, though Nelson has asked the trust to share information voluntarily. The trust board welcomed the external review and agreed to contribute to the process.

The probe follows three internal reviews into DOC's Northern North Island region, which found interconnected failures in leadership, governance and control. Conflict of interest disclosures were rare despite circumstances that would normally require them, and procurement and payment protocols in Kaitaia were applied inconsistently, with purchase orders repeatedly completed after transactions or not raised at all.

A survey of 105 staff—73% of the regional workforce—revealed low confidence in regional leadership. Staff described instances of bullying and intimidation, including raised voices, undermining conduct, and positional authority used to silence or marginalise colleagues, with inadequate consequences normalising such conduct in parts of the region and discouraging staff from reporting concerns.

DOC deputy director-general Sia Aston said the department was treating the findings very seriously. Senior leaders have approved a corrective action plan with weekly reporting to the director-general, and have committed to completing the plan within 12 months.