Big name called in to check Hubbard statutory management

Friday 20th May 2011 3 Comments

Sir John Anderson and a senior accountant have been tapped to check the statutory management of Timaru-based Allan and Jean Hubbard.

The Registrar of Companies said Sir John and Rod Pardington, of Deloitte, were commissioned on May 5 to assess the progress of the statutory management of Aorangi Securities, Hubbard Churcher Trust Management and related trusts and other entities that were placed in statutory management.

They will report in early July. Sir John, a former ANZ National Bank boss, has frequently been called on by governments in this country in a range of roles, including fixer.

He chaired Capital and Coast District Health Board after a series of financial problems and in 2008 he became commissioner of the Hawke's Bay District Health Board when then Health Minister, David Cunliffe, sacked the board.

The government placed the Hubbards under statutory management last year, along with seven charitable trusts and Aorangi Securities.

The rare move has triggered a backlash from supporters of the couple, who live modestly and give generously to their community. South Canterbury Finance, the finance company associated with the Hubbards, also collapsed, triggering a large government liability under the Crown retail deposit guarantee scheme.

Prime Minister John Key told a public meeting in Timaru that "I like Allan Hubbard", but he said South Canterbury Finance made a lot of loans to people who could not pay them back.

The Hubbards have initiated judicial review proceedings seeking to remove them from being personally subjected to statutory management.

The registrar said the assessment was commissioned on May 5, before the Hubbards launched the legal challenge.

Comments from our readers

On 20 May 2011 at 8:45 pm Artorious said:

Oh sure it was commisioned before mmay 5, thats why we are only hearing about it now a week or more after the Hubbards launched their legal challenge.

On 21 May 2011 at 2:25 pm Arthur Rowntree said:

Just get on with untangling this mess. Is there no limit to squandering taxpayers funds to pay exorbitant fees to lawyers and other experts. This softly, softly approach is indefensible. Get it sorted and make Hubbard and his cronies repay the taxpayers for their incompetance. The US didn't procrastinate with Madoff!!!

On 23 May 2011 at 12:04 am Avalon said:

Remember that Madoff pleaded guilty - the Hubbards haven't coughed or been charged yet.