Sec Com: No conflict of interest for Botherway

Friday 25th June 2010

The Securities Commission says reports that Simon Botherway had declared a potential conflict of interest in relation to Allan Hubbard were incorrect.

The Government placed Allan Hubbard and Margaret Hubbard, Aorangi Securities and seven charitable trusts, into statutory management on Sunday over irregularities involving loans valued at $134 million. However Hubbard's most high profile vehicle, South Canterbury Finance, was specifically excluded.

Fairfax media reported this morning that Botherway, a member of the Securities Commission which recommended the Hubbard's be placed in statutory management, is also the brother of a businessman placed in receivership by South Canterbury Finance (SCF) last year. It said Botherway yesterday declared a "potential conflict of interest".

The Securities Commission said in a statement today that Botherway declared that he may have a potential interest in matters relating directly to South Canterbury Finance because of previous business dealings between his brother and that company.

However, on the basis that the statutory management order does not apply to South Canterbury Finance, the Commission says it is satisfied that Botherway does not have a conflict of interest.

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