The possibility of a potential conflict of interest has been noted for a member of the Securities Commission which recommended Allan and Jean Hubbard be placed in statutory management.The Government moved on Sunday to appoint statutory managers to Aorangi
The possibility of a potential conflict of interest has been noted for a member of the Securities Commission which recommended Allan and Jean Hubbard be placed in statutory management.
The Government moved on Sunday to appoint statutory managers to Aorangi Securities and the business interests of Hubbard and his wife Jean after a complaint from an investor.
The move is rare and has had ramifications for South Canterbury Finance (SCF), a company associated with Hubbard, but not in statutory management.
Yesterday Securities Commission member Simon Botherway declared he had a potential conflict of interest in the Hubbard case as the brother of businessman Jonathan Botherway, media reported.
Jonathan Botherway's hospitality empire collapsed in July 2009 after SCF, then owed $7.8 million, put it in receivership.
Commission spokesman Roger Marwick said chairwoman Jane Diplock was made aware of the connection yesterday, but did not believe there was a conflict on interest.
Supporters of Timaru-based Hubbard are funding an advertising campaign rallying support for the 82-year-old businessman, while McDouall Stuart head of research John Kidd said it was difficult to understate the gravity and implications of the decision to appoint a statutory manager.
"It is in all parties' interests to resolve this matter urgently. The market desperately wants and needs to see someone that they had until now trusted and respected show that they were and are deserving of that faith.
"If the market is proven wrong, the result will be a further body-blow in confidence to a sector that is already on its knees. If the market is proven right, the regulator will need to seriously address confidence issues in itself.
"Swords should be fallen upon," he said.
