A group of 71 investors have written to Commerce Minister Simon Power asking him to terminate the statutory management of entities associated with Timaru businessman Allan Hubbard and his wife Jean.The letter, copied to all cabinet ministers, was sent by
A group of 71 investors have written to Commerce Minister Simon Power asking him to terminate the statutory management of entities associated with Timaru businessman Allan Hubbard and his wife Jean.
The letter, copied to all cabinet ministers, was sent by supporter Tony Brazier on behalf of the investors. It was circulated by law firm Chen Palmer.
The intention to send the letter had earlier been signalled.
The Government placed Mr and Mrs Hubbard, their companies Aorangi Securities Ltd (ASL) and Hubbard Managed Funds (HMF), and seven charitable trusts, into statutory management. Investors' funds have been frozen. The Serious Fraud Office (SFO) is also investigating.
The letter says that it is unfair to prolong Mr and Mrs Hubbard's humiliation and distress.
Statutory management has only been used on two previous occasions in the past 10 years and it is a "top shelf" means of intervention.
The investors in ASL and HMF said the statutory management was supposed to protect their interests.
"The investigations have demonstrated what we as investors have always believed: that our interests have never been at risk, and continuing statutory management only further damages the financial situation of ASL and HMF, and causes hardship to investors, many of whom are reliant on receiving interest payments."
The statutory management process has, to date, provided no evidence of substantial wrong doing by Mr Hubbard.
The first report by the statutory managers focused on inadequate documentation and accounting systems.
However, as part of the statutory management proper systems have now been put in place.
The letter said that the SFO has not announced any evidence of fraudulent behaviour, and said "we understand that it is unlikely to be pressing any charges".
"As investors, we are now confident that there has been no fraudulent or otherwise misleading behaviour by Mr Hubbard, and that the changes implemented by the statutory managers have removed any possibility that our investments are at risk due to inadequate bookkeeping and documentation."
Many investors had told Mr Brazier that Mr Hubbard had always looked after his investors.
The letter calls for an urgent response.
