Fran O’Sullivan has written a very strong opinion piece on SCF in the NZH here.
“The credibility problem that Feeley faces is that after four months investigating Hubbard’s smaller entities, he has still to make a decision on whether to file fraud charges against the SFO founder on that score.
When Feeley announced his initial Hubbard probe he went in with all guns blazing. But after several weeks of saying the SFO was close to making a decision, nothing has materialised.
Hubbard has major beefs with the process.
He has also taken issue with the way the statutory managers who have control of his own affairs as well as Aorangi Securities and other small entities are managing affairs. “It is like the way the Nazis treated the Jews; they grabbed all their assets under trumped-up charges. You have to wonder who the National Government will pick on next.”
There are too many layers of regulators, too may issues around the statutory management process, too many issues about the role of the Securities Commission, and frankly too great a contrast between the government’s handling of SCF and the plethora of other finance company failures, many with much more obvious concerns apparent to all.
One commentator to Fran’s piece says as follows:
“Just as intriguing. Why isn’t Feeley taking the same approach to Hanover, BridgeCorp, Hanover, Blue Chip, Hanover, Strategic, Capital & Merchant, and . Hanover? These are all prima-facie, far more obvious instances of self interested activity and related party dealings. Keep up the good work Fran.”
Or is there something else going on? Selective leaks from inside sources to settle old scores? A sad attempt to bury a frail old man while he is still alive?
Of course we cannot know everything about SCF. No-one does.
Only a full, independant judicial inquiry can answer these questions.
Agreed,
This case has worried me as I believe this could be real case of corruption.
They have even yet to charge Allan Hubbard, take him to court or show some REAL evidence yet the managers, SFO and national government have already whipped up a fire storm against him.
I remember John Key on the News declared a few months back it was solely Allan Hubbard fault for the fall of SCF, he didn’t mention all the other directors and executives who are also responsible for SCF.
No wonder NZ is screwed, just a insiders game….
How did Grant Thornton get to be the statutory managers (and now the liquidators) of Allan’s business(es) when Graeme McGlinn, one of Thornton’s directors inluenced the decision to apply statutory management and the SFO in the first place?
This is an absolute scandal – happening on Simon Power’s watch.
How on earth did we get from “this will not affect SCF” (Simon Power @20th June 2010) and “Allan Hubbard’s relationship with SCF is ancient history” (Jane Diplock @25th June 2010)…..to “Allan Hubbard is completely responsible for BANKRUPTING that company” (John Key @1st Sept 2010)???
@ 4:37pm
Erm yes, what is John Key saying now? Where’s Wally?
I sincerely hope John Key will continue to blame Allan Hubbard completely if the Crown/taxpayer ends up with a profit from the receivership of SCF.
What successful action has the SFO ever achieved?
Where are the reforms that the “New” Labour are proposing. The finance industry has been the wild west since the 80′s. From memory there have been countless reports commissioned that this industry required radical reform. We had the 84 version of Lab, the 90′s of Nat the 00′s of Lab and still all you guys with the abilty to progess change did was naval gaze, then blame the “other” side. No-one whats to take ownership for change just assign blame.
“Why isn’t Feeley taking the same approach to Hanover, BridgeCorp, Hanover, Blue Chip, Hanover, Strategic, Capital & Merchant, and . Hanover? These are all prima-facie” where not many of these businesses failing before Nov 08 and what occurred then?
@Herodotus
“where not many of these businesses failing before Nov 08 and what occurred then?”
Many companies where failing before the crash, it been wild west since roger did his ‘reforms’. This is partly what drove our housing boom, because the share/finance market is to dodge to invest in… nothing but crooks in suits with no accountability.
Judicial enquiry ASAP. It will be very interesting to find out who the real crooks are.Anonymous complaint to the Sec Com ? Statutory what? One thing is for sure Mr Allan Hubbard has always looked after his investors and paid his dues. Since 20/8/10 things have changed for the worse.
Yes David National are dragging the chain on investigating the companies that folded while you were in power.
Actually if I recall Hanover froze payments to investors under your watch and I believe 24 Finance companies went into receivership while you watched.
Whoops misprint since 20/6/10 things have changed for the worse and I tell you they are bad. Three meaningless reports, and managers who won’t reply to questions. Managers who are attempting to liquidate our assets and investments without our permission. 4 months and no decision from the SFO. No valid response to my questions from Govt MPs. Absolutely nowhere to turn to get answers. I can’t wait to find out who has committed the crimes.
This whole thing is ridiculous…Allan says the investments in ASL & HMF …ARE THERE and safe if only they would give him back control, and we totally trust him, he didn’t create his empire and in the process be the backbone of the Sth Island economy by being the sort of person the National Govt are accusing him of!! this is undoubtedly a jacked up inside job and this needs to be exposed, it is unbelievable that this can happen in our “clean green/straight” country!! but the people with the power to do something are the ones that created this monster!!!
Why is it the people of NZ want to beleive the govt are the good guys in this. This whole process has cost the taxpayer dearly all because the govt want an old man’s wealth before he passes away, well I tell you this is just a ludicrous way to go about it John Key, Allan Hubbard has done nothing wrong and if you want to charge him then you better be ready to charge sandy maker and lachie mcleod and all the other managers of SCF who lent money, if it is only AH charged it truly shows that the govt are out to crucify him all for the wrong reasons, trial by media of AH shows us just how gutless you bunch of pricks are by trying to destroy AH this way, what happened to the good old fashion way of sitting down with Allan Hubbard and working with him to get what it is you require to know, bugger me how hard would that be we know
AH is prepared to sit and talk it through with you now how about you the govt stop wasteing more tax payers money and talk with Allan to get your answers not hang him through the media.
If the Government tries to charge Allan Hubbard with crimes, we will be seeking an immediate injunction to stop them. We can walk in to a court room right now with nearly 2000 pages of documented evidence and video footage from television, showing beyond any doubt, that the media reporting and commentary of the Government’s statements about Allan have been so overwhelmingly negative and biased that he stands no chance whatsoever of receiving a fair trial.
Further to that, we have presented Parliament with hard evidence that he has been on trial for crimes he has not even been charged with, in the media already.
This perversion of justice is happening on Simon Power’s watch and we are holding him personally responsible for it.
Simon Power is starting to lose any shred of credibility he might have once had, by trying a reasonable amount deleted because of risk of defamation Trevor, which is a scandalous conflict of interest.
Simon Power should resign. He is tainted with this – badly.
I agree, is Labour going to promise to open one if they get into power if NACT don’t start one now?
This whole episode has been absolutely disgusting in the yes of justice> I have been with Allan Hubbard (Aorangi Sec) for eight years and have never had a cause to complain on anything. Interest and statements have always been on time.
can’t say that now as only these stupid Stat. Manager’s reports turn up and don’t tell you what you want to know ie
how long are they going to draw this performance out for. Perhaps they want to drag it out long enough, so that investors have lost their money so there is no reason to continue. I bet their fat fees have been paid!
Further to previous message, I would like to mention that I have been a National voter most of my life,(I am almost 76) and they have had the last vote out of me and several of my friends feel the same way!
@Mark M 7.25: Are you suggesting Labour should have included failed finance companies like Bridgecorp and Hanover in the Retail Deposit Guarantee Scheme even though they did not qualify and did not subscribe? Or are you trying to blame us for their abject greed and stupidity in building business models that could only ever work on the way up and had to fold on the way down? Or just being partisan?
@Draco: If National does not do a full inquiry in office I will gladly back one on election.
@Heather: Thank you for that heartfelt comment. I have had many like it.
According to government Allan had nothing to do with SCF on June 20th and yet it was all his fault on August 31st. We now have a government that is going down the fascist road, lie after lie being told about Hubbard and worse still government are believing themselves. Like Mr Hubbard I believe this is akin to pre-war Germany. Tell enough lies about a certain citizenry and you have the populace believing them. Has the Christchurch Press got a government plant, the anonymous writer Chalkie, who is bloated with falsehoods. Is Chalkie ensconced at the Statutory Manager’s office Grant Thornton. Has John our appeasing prime minister got the spine to call for a judicial enquiry so the truth can be exposed on all fronts – or is the truth to some politicians like light to sore eyes.
I fully support David Cinliffe in his request for a Judicial Inquiry. This whole episode has been very poorly handled from the PM right down through the ranks to the Stat Managers. Let us have a good look into SCF and the jobs for the boys and the incestial related loans. There are a lot of unanswered questions which ALL THE DIRECTORS should be asked to solve. I am definitely NOT EVER voting for National again.
What has Bill English got to hide that he maintains it is not necessary?????
It has now been 4 months since Stat Management was imposed on Mr and Mrs Hubbard and what have the Stat Managers come up with? A couple of useless paper wasting reports telling us nothing with no back up of figures at all. We have been investors with Allan for many years and there has never been any time that statements or interest payments have failed. It is absolutely disgraceful on the part of this Government what has happened to one of New Zealand’s best. There are so many questions which need answers but we all feel powerless in this situation. We can all see that this Government has had a hidden agenda with a mock letter of complaint [how can one act on an unsigned document] to get rid of Allan who stood in their way of a Heartland Bank. Mark my words that Bank will be up and running in 2011. It won’t get a cent from us and my vote won’t be going to National ever again. A judicial inquiry is needed asap before this happens again to some other innocent person. I am not proud to be a New Zealander if this is how our present Prime Minister goes about getting what he wants.
when SM was announced Hubbard was reported to have said ” If Key knw about this it wouldnt have happened” or something similar I wonder if Alan feels the blade in his back from Mr. Key? Hubbard either misjudged key or key speaks with forked tongue.
Great article. You said it almost all
Long way to go yet before all is revealed.
http://www.interest.co.nz/news/hubbard-didnt-invest-money-he-was-instructed-south-canterbury-finance-receiver
@Red Rosa: The article you posted should make you ask the following questions:
1: Why did the receiver give the same information to Bernard Hickey for the herald to print, that the SFO raided the NBR for 24 hours earlier?
2: Do the same SFO rules apply to the receiver and Bernard Hickey and the NZ Herald that they applied to the NBR?
3: Do you think Bernard Hickey phoned Allan for his version of events before rushing to print that article? (I can safely tell you that “no – he did not”).
Simon Power is going to find it impossible to convince a judge that Allan Hubbard would get a fair trial if he was required to face one now, thanks to the likes of Bernard Hickey.
May I suggest that people read a book titled “THE CONFESSION OF AN ECONOMIC HITMAN” by [john?] Perkins. He was a HIGH level insider with THe US/Govt/Corporation’s deliberate robbing of 3rd world [AKA -NZ] resources..
I have konw Alan Hubbard all my life; a deeply honourable man.
Why is the National party investigating all the Auckland robbers who are still building their mansions & yatch’s with stolen investors money, & getting away with it scott free!
AND: why is NO ONE investigating John Key’s roll in Merryl Lynch Global…they where part of the reason for the global economic collapse..
Read July 2009 ROLLING STONE magazine article “THE GREAT AMERICAN BUBBLE MACHINE”
Keep digging…David Ford [just back from USA where things are worse than here.]
The difference between SCF and all the others mentioned is that they didn’t sign up to the retail deposits protection scheme and their depositors weren’t paid out when the businesses collapsed.
SCF has been under Treasury scrutiny for some considerable time which is obviously linked to it having signed up to this scheme, an extra layer of scrutiny of their financial affairs.