Key pours cold water on Hubbard claim
Prime Minister John Key knew before he left the country that South Canterbury Finance owner Allan Hubbard and his business interests would be put into statutory management last weekend and he supports the decision.
Asked to respond to Mr Hubbard’s claim that had he been in the country last weekend the statutory management order would not have been made, Mr Key said that was wrong.
“I was advised before I left the country that it was likely that ministers would have to group together on Sunday to make that decision,” Mr Key told reporters at a pre cabinet press conference this morning.
“I was aware of the decision they made and I support the decision they made,” he added.
Mr Key had been in South Africa at the FIFA World Cup.
On Sunday Commerce Minister Simon Power placed Aorangi Securities, seven charitable trusts, and Mr Allan Hubbard and his wife into statutory management.
The Serious Fraud Office is now investigating Aorangi.
Mr Hubbard described the move as "misguided" and yesterday said he believed Mr Key would have acted differently had he been in the country.
“I think if John Key had been there – he's a practical person – he would have seen this as nonsense," Mr Hubbard said.
Mr Key’s press secretary said there would be no further comment on the issue at this stage.
Meanwhile, the SFO has taken control of Aorangi’s offices in Timaru.
The inquiry centres on suspected offences involving “serious or complex fraud.”
At issue is whether any or all of about $134 million of investors' funds deposited with Aorangi had been received after proper disclosure, and whether those funds had been dealt with in a manner consistent with representations made to investors.
SFO chief executive Adam Feeley told NBR his team was well advanced on its first priority of securing documents.
“Having secured most of the info we need we think it is appropriate to let the statutory managers get themselves in order and get their perspective on things. I think a lot of what they are doing will inform our process. So we just want to give them some space now to get organised.”
Accountants Trevor Thornton and Richard Simpson from Grant Thornton have been appointed as statutory managers.
Mr Simpson said they were making good progress in understanding both Aorangi Securities and the business interests of Mr and Mrs Hubbard.
Letters were being sent shortly to the more than 400 investors in Aorangi Securities Limited to confirm details of their investments.
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Comments and questions48
Stupid uninformed anonymous comments only suggest something about the writer, not the man in question
The problem for Alan Hubbard will be that being basically an honest man he will make it very easy for the bloodhounds to crucify him for what will be in reality minor breaches of impractical rules set up to catch the real cheaters who of course rarely get pinged because they don't co-operate! A victory for the bureaucrats, politicions and the cheaters alike, a defeat decent human beings.
My thought is that this will prove to be a matter of Aorangi not scrupulously documenting transactions, rather than any fraud. I dont believe Alan Hubbard is a dishonest man; very much the opposite, but things done on a handshake in the past cannot now be so done.
supporters?
I hope John key has the correct facts or he will look like a pillick and his poling in the South Island will drop.
I appreciate that he has to support his Ministers but his response on Hubbard puts him on a plate if he is wrong.
He hasn't been proven guolty yet you pillick.
Wait and see
Let John McPherson and his team do the job for the SFO.
Trevor Thornton is another Southern man who I trust to carry out his duties with integrity.
Let the statutory procedures take place as they must.
you dolt.
One thing is absolutly certain from all this, there's never been more commentary and hits on NBR's website, the owner and advertisers will be happy that's for sure.
Reminds me of all the rubber neckers when you drive past a big accident on the motorway, who can resist having a look ?
From the movie Titanic, we all know that no-one, not one person, from any one of the life boats sitting their watching it sink, was brave enough to row back and help.. rather ironic....history has a way of repeating itself......
If you have a politician for a friend, you don't have a friend.
Hubbard better get good sercurity!!
Save your security threats for the hound who really deserves it, who lives, (sometimes on Paritai drive), if he's ever brave enough to come back to N.Z. he'll need world class security,
Some would speculate the reason he's stopped work on that property is he knows if he finishes it and comes back he's in for a world of hurt....
Better start getting some advice from the likes of hotchin and maddoff mr allan hubbard
Come one people, this is and means nothing. Mr Key was never going to back Hubbard at the expense of his ministers, even if Hubbard was right (he obviously thinks he's right, but on this point I doubt Mr Key would have saved him one bit).
All the freaks come out of the closet to taunt him.
I think some of the anonymous comments here are appalling and that the NBR should consider filtering some out.
Many above comments do not know more than what has been reported so I suggest you all hold back until we all do.
I hope this all ends up tidy for everyone involved and Mr Hubbard's reputation in the community is reaffirmed.
In the meantime if you can't be constructive please keep your views to yourself and do not participate in a kangaroo court involving character assassination.
Well said Charles.
It might be interesting to consider the "legal" advisers who surround Mr Hubbard and their intentions?
Gee you have to be quick to get in on the first page page of these comments.
Each story that comes out lessens the integrity of the man and increases the likleyhood of catastrophic failure of the whole house of cards he built. We should respect that?????
When there are suspicions about any financial services then I would want the authoriies to investigate it. And if statutory management is used then so be it.
If after an investigation there is found to be no issue. That's good.
I will still support our noble civil servants for following it up. It's their job to do .
A commentor above says "minor breaches of impractical rules" Minor???!! Minor!!?? You must be joking. This is serious fraud we are talking here and a propable billion dollar cost to the NZ tax payer from this old fool Get real dude!!
"This is serious fraud ..."
Oh, so you've seen the SFO's report, have you? Before they've even written it.
and to add to that:
It's guilty not guolty and.....
polling not poling (unless you are talking sport.......)
Dolt!! ha ha - love it!! Haven't heard that for years...!
Graeme is right. Whatever one's views, an honourable and generous man, who is ill and elderly, has been treated appallingly rudely by that windbag Simon Power. The approach made on the issue is disgusting -including the automatic assumption of serious fraud.John Key runs with the hounds - as ever. Bah.
When have they got it right? Rarely!!
A Gross over reaction by a very risk averse organisation. A guess time will tell...
The sad thing about this is an overseas investor in the finance of NZers is the last think we need!!! They are hardly going to support local charities or businesses.
If Timaru had any brains, the local professionals; possibly council(s) should pool there money together & provide the share equity necessary. They'll be losing a big part of their local economy if they dont.
Thats my advice for what its worth.
2 cents.
Who exactly are you red god the pirate? are you part of hubbards team?
Disgusting how nbr removes all posts that are negative against allan habbard
You can't spell Anon 8.19pm.
These posts are not just negative,they are derogatory and libellous.
Yours deserves to be wiped.
Anon at 7.09pm alleges serious fraud in regard to Aorangi Investments Limited.
On what basis pray tell ?
You get real dude,and give me some facts to back up your allegations.
Also,please define your definition of serious fraud.
I has just come off the telephone to an Aorangi investor who has no evidence to back your viewpoint,and is not uncomfortable in regard to his situation.He has no evidence of serious fraud.
So come on,I am waiting for you to inform me what SFO will find.
Then I will phone the investor and tell him.
Yeah get real anon. Hubbard is doing his best to try keep clean even though he may have cooked the books and keep his hands clean by resigning as director. Not everyone can be winners and in this case mr hubbard is a winner (mum and dad investors lose there money while allan carries up living it up.
Hubbard said in the Listener he was looking forward to judgement day - might come sooner than he expected. But from a judge not his big mate god.
Gee these god-bothering types are the worst when it comes to business ethics.
Roll on the investigation!!! Looks like good entertainment!!
As I did not make the above post,I am going to report it to the NBR and have it removed.
Who are you Tomaa ?
I think it hilaroius how these Hubbard supporters seem to react to a bit of a stir. Of course no one knows what fraud will be exposed - but it is sure fun stirring up these dudes. Gee its just a silly comments page - do you somehow think you can restore AH's cred through this??
Its long gone guys. Get a good nights sleep!
See you all at the next bad news Hubbard story!
I have reported this to NBR administration.
Either choose your own poster identity or call yourself Anon.
There is suspicion of malpractice and criminal intent, but nothing is yet proved. Get a good night's sleep.
How come no one has noticed the fact sheet and diagram published by the Companies Office? It clearly shows investors' money being paid out of Aorangi to the Hubbards. That's the main reason for the investigation.
Didn't think it was you Red Dog - you can spell much better than the imitator!
can't sleeeeppzzzzzz
Sandy Maier will be te one who created the web to pot poor old Hubbard.
For those who saw him in action at Citibank and then at DFC years ago, they will know how he manipulates situations and turns dog on people if it means he can score points. He is an a hole.
This time he has destroyed Hubbard and is about to destroy SCF as all investor support will now be gone. SCF will beover before the end of June when it didn't hav eto be that way.
Maier the undertaker will then collect the balance of his yearly contraxct and probably a bonus and be on his way to the next crap job that requires an a hole to run.
Michael Stiassny is an angel compared to this tosser.
Very Interesting.
From my conversation with the Aorangi Investor this evening,I do not believe this situation has arisen as a result from such sources,as there has been no reported defaults,which would have hit the press by now.
Yes Black Dog I did manage 74 in School Cert English....Though not in the same league as Brian Fallow from NZ Herald...He got 92 in School Cert English.
who gets the water?
You've just shown your gross ignorance there, my friend. Nothing could be further from the truth.
I've never seen such a litany of despicable, vicious, totally ignorant and unwarranted allegations as has been displayed in this forum over the last few days. My, there are some real nasty creatures out there.
The sad thing is that the Government, in seeking to "protect investors interests", has in fact achieved the very opposite result, by effectively scuttling any hope of SCF being able to stabilise and conduct its business in an orderly manner. Contrary to what some of you seem to think, there are thousands of "mum & dad" investors who are not covered by the Government guarantee, i.e. they have invested millions and millions in Perpetual Preference shares and 2012 bonds; repayment of these investments is now at extreme risk if SCF is unable to raise the required extra outside capital and/or replace maturing bonds at a satisfactory level.
If (as I expect) the outcome of all this Government investigation is that they find no proof of fraudulent behaviour, I hope that Mr. Hubbard sues them for hundreds of millions. I make that statement advisedly.
Very good post CC.
won t help the cause when a little more bad wahing at scf is hung out. like multi million dollar loans to the likes of serepisos.I wonder if any bounced cheques have been floating between wgtn and timaru
These bonds are covered by the guarantee up until the end of 2011.Agree with all your comments CC
I don't normally add to rumour and conjecture, but some of the comments here are just too far out there to ignore. Talk about completely misinformed. I recently repaid my loan to SCF after many years as their client. I also met Hubbard. He is one of the country's last honourable businessmen, who when they say they will do something, do it. If, at the age of 82 having to receive dialysis, living in the same extremely modest home he and his wife have for years, and driving his 60's dubby, he can be compared to the dogs at Bridgecorp, Hanover, etc, then you all need to check your own commercial behaviour before critising this guy. He's stuck to his word, and thrown $150m+ of his assets into the pot so far, to assist with shoring up the books. Would a scammer do that? I doubt it. The scammer would be on the same beach as Hutching...give the guy a break. This country is fantastic at crucifying people on hearsay. I predict you'll eat your words.
Could this just be a case of a disgruntled greedy investor making waves and the stupid Govt fell for it.
Or is this a attempt by the powers to be at getting their hands on his money before he passes on?.
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