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Hubbard seeks review of statutory management decision

Monday 24th January 2011

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Allan Hubbard and his supporters have written to Commerce Minister Simon Power asking for a review of the decision to put him in statutory management.

The NZ Herald reported that Hubbard, who is 82, sent a memorandum to Power last week and also that Mr Hubbard is chafing at a suggestion he get a brain scan to prove his health.

Supporters of Hubbard today circulated a letter to the media they have sent to Power asking for a review of the statutory management.

Hubbard, his wife Jean, Aorangi Securities and seven trusts associated with the Hubbards were put in statutory management in June last year. The move came after a complaint from an investor. Two further trusts - Temple Bar Family Trust and Barns Charitable Trust - were also later placed in statutory management.

South Canterbury Finance, the finance company associated with Hubbard also collapsed, triggering a $1.58 billion payment under the Crown retail deposit guarantee scheme.

The letter from Hubbard's supporters says they have not seen a report from the statutory manager to the Securities Commission but a copy was supplied to Hubbard's lawyers Russell McVeagh on a confidential basis.

The supporters group understood that the report alleged that Aorangi Securities was trading recklessly, that Aorangi was insolvent, that the majority of Aorangi loans were to Hubbard, that no securities were held for the loans, and that the loans were not authorised by investors.

No opportunity was given to Aorangi Securities or the Hubbards to reply to any of the allegations.

The supporters refuted all the allegations they believe were in the report.

The Securities Commission, Government Caucus and the Governor General had all been misled by a report that was clearly incorrect and had not been subject to any separate verification or been open to challenge from the other parties involved, the supporters said.

"This unnecessary and inhuman tribulation has been inflicted upon someone who has clearly devoted his life to the betterment of New Zealand, a person who lives a modest life, has given over $200 million to New Zealand charities, has assisted 250 young farmers on to dairy farms with interest free loans, established a charitable trust for single income families in South Canterbury so their children can attend university or other tertiary education is indefensible," the supporters said.

 

NZPA



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