South Canterbury Finance chief executive Sandy Maier has taken the brunt of vitriol in public comments following the announcement of New Zealand's biggest company failure this morning along with founder and major shareholder Allan Hubbard.Comments posted
South Canterbury Finance chief executive Sandy Maier has taken the brunt of vitriol in public comments following the announcement of New Zealand’s biggest company failure this morning along with founder and major shareholder Allan Hubbard.
Comments posted on NBR’s website today point the finger squarely at Mr Maier’s handling of South Canterbury’s woes, which this morning resulted in the company’s inability to find fresh funds leading to receivers being called in.
In addition, Mr Hubbard is taking flack, but also receiving a great deal of support from readers, many of whom condemn the move to put his affairs into statutory management in March.
Gee Whizz wrote: “This hasn’t happened overnight, or throughout the time the SFO has been involved in the Hubbards other interests. This has been going for almost two years year. I appreciate that people may be hurt by what has happened and that their beloved Mr Hubbard has come under scrutiny, however, it was very strongly deserved and in all reality should be been done some 12-24 moths ago.”
“Sandy and the board of SCF have added no value over the last nine months after being appointed. All they have been is one big cost,” one reader wrote.
“Sandy is the winner. He fleeced the government in the wind up of DFC and now he’ll get another gig. Selling the company would not help him because he would be out on his bum.”
Others suggested Mr Maier had already planned his future prior to this morning’s announcement.
“One would hope that Sandy Maier does not get a bonus or is paid out his contract after such non-performance. Maybe he has already sorted that out before pulling the plug.”
Another said: “What a poor effort from Sandy Maier after so much hype over the past few weeks. Goodbye Sandy – please retire this time and do the country a favour.”
One questioned Mr Maier’s ability to solve South Canterbury’s problems.
“Obviously Sandy Maier can’t negotiate his way out of a paper bag. He had five parties at the table and lost them all. Surely they were credible bidders with credible offers. Sandy hopefully didn’t lead them up the proverbial garden path and lost them.”
However, another reader was more charitable.
“To be fair to Sandy, the damage was done prior to his arrival. Let’s face it, you can no collect a bad lend or extract face value from it. This damage has been caused by a series of blunders two years plus ago where greedy managers were getting paid on asset growth with poor governance to manage the risk side because of antiquated processes.”
More forward looking was this: “The losers are the many business and individuals with loans that are not in arrears who will now have pressure on them to repay and they will live in fear of receiving a demand for repayment for the next period. Their business and personal lives will suffer as will the local economy. They can’t be considered greedy like the investors have been – they are just normal people living normal lives.
“They were hoping that Sandy Maier and his board would not let them down.”
None Investor questions where financial advisor sit on this.
“Please can someone answer this, I understand a lot of money went into SCF and other finance companies on the advice of financial advisors. They, in return, got a very good fee for this. Where is the come back on this advice?”
In reaction to a statement put out by Mr Hubbard today claimed he could have saved South Canterbury if he wasn’t subject to statutory management, a reader said that he must accept the blame.
“It’s a bit rich to be attacking the government Mr Hubbard. After all SCF lobbied very hard for government guarantees and a further extension. As a taxpayer I do not think it is their role to prop up your organisation’s operations. You should be grateful of the taxpayers who are now footing the bills of your company’s errors. Mr Hubbard, I suggest you keep your head down and retain your dignity.”
More anonymous comment suggested South Canterbury was science fiction.
“Close Encounters of the Third Kind. First statutory managers, then SFO, now receivers. Allan Hubbard thinks he is Bruce Almighty – probably closer to Aice in Wonderland, For taxpayers, it is Alien v Predators.”
