South Canterbury Finance chief executive Sandy Maier is stressing the company's independence from former chairman, multi-millionaire Allan Hubbard, who is under statutory management and being investigated by the Serious Fraud Office (SFO).Mr Hubbard's com
South Canterbury Finance chief executive Sandy Maier is stressing the company's independence from former chairman, multi-millionaire Allan Hubbard, who is under statutory management and being investigated by the Serious Fraud Office (SFO).
Mr Hubbard's company, Aorangi Securities, his wife, Margaret, and seven of their charitable trusts have been placed under statutory management in relation to unsecured and undocumented loans.
The matter was also referred to the SFO for possible breaches of the Crimes Act.
South Canterbury Finance, with which Mr Hubbard, 82, was closely associated, was not part of the statutory management order.
Mr Maier told NZPA Mr Hubbard, a significant shareholder in South Canterbury Finance, was no longer a director or chairman with the company. However, he was recently made president for life.
Mr Maier said he was keen to make sure public confidence in South Canterbury was not affected. However, he was concerned because of the long and close link between the company and Mr Hubbard.
South Canterbury had not been contacted officially in relation to the statutory management, Mr Maier said.
In late May, rating agency Standard & Poor's lowered South Canterbury's long term credit rating by two notches to B plus.
The company had already been accepted for the government's extended retail deposit scheme, which goes through to December 31, 2011.
The Treasury's director of financial operations, Brian McCulloch, said South Canterbury's depositors remained covered by the deposit guarantee.
