Former Capital + Merchant Finance director Trevor Janes passed the smell-test on his appointment to head the Accident Compensation Corp board's investment committee after officials had a look at it.
In response to questions from Labour Party MP Phil Twyford, ACC chairwoman Paula Rebstock told parliament's transport and industrial relations committee that officials undertook due diligence into Mr Janes' role at Capital + Merchant and the Financial Markets Authority's investigation into the failed lender.
"It is something that was investigated prior to him coming on the board," Ms Rebstock said. "I have been given assurances about the appropriateness of having Mr Janes chair that committee."
Mr Janes was appointed deputy chairman of ACC last year in a boardroom sweep-out of the state-owned insurer after major privacy breaches undermined ACC Minister Judith Collins' confidence in the board.
He heads the investment committee, which sets the risk tolerance and guidelines, reviews ACC's investment portfolio and controls the investment framework for its funds.
He left Capital + Merchant in 2006, a year before the lender collapsed in 2007 owing some $167.1 million to about 7,500 investors.
Three other Capital + Merchant directors have since been subject to successful fraud prosecutions and three have pleaded guilty to making untrue statements in an offer document.
Committee chairman and National Party MP David Bennett slowed down the questioning process, saying "sensitive issues like that, we just need to take a bit of time".
Mr Twyford queried Mr Janes' role heading the investment committee after Ms Rebstock had earlier paid tribute to ACC's investment team, saying its performance was "nothing short of outstanding" and the only fund they can find with comparable returns was the Yale University endowment fund.
ACC's investment portfolio manages about $20.5 billion and is the country's biggest fund.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Taniwha tax axed at the stroke of a pen
- Trump encourages Russian hackers to release Clinton emails
- Auckland intensification positive; housing affordability and business land supply slightly negative
- Search leader dismisses 'glide landing' theory in Flight MH370 crash
- Trustpower tax ruling: Government needs to act to clarify law for other firms
Most listened to
- Government will need to tidy up tax law in wake of Trustpower case, says Deloitte New Zealand tax partner Greg Haddon
- The reviled Taniwha Tax has been dropped from Auckland's Unitary Plan. Taxpayers' Union's Jordan Williams says it's a major coup
- Abano CEO Richard Keys on why his company doesn't have to pay top dollar for dental practices
- Nevil Gibson's Carry On has the latest on airlines, aircraft and route news of the week
- Despite a few howls of protest, land economics expert Adam Thompson says the Auckland Unitary Plan is positive