Response to SFO probe of South Canterbury Finance

Response to SFO probe into South Canterbury Finance

Today's announcement by Adam Feeley of the SFO, that the SFO is turning it's attention to transactions that occurred prior to the receivership of South Canterbury Finance is at least a step in the right direction for transparency.

Allan Hubbard and his supporters (many of whom are also his investors) sincerely believe that Allan has not committed any fraud, and has never intended to defraud anyone, and we welcome the attention now being paid to other parties involved in South Canterbury Finance as it is only fair that they be subjected to the same scrutiny that Allan has had to endure since 20th June.

It is completely incorrect for anyone to suggest that Allan Hubbard made decisions alone at South Canterbury Finance, or that he was completely responsible for the outcome(s).

The fact is that all lending could only be approved by the unanimous vote of the directors.

Prime Minister John Key was completely wrong in suggesting that Allan Hubbard was "completely responsible for 'bankrupting'' South Canterbury Finance" and such a comment was, frankly, defamatory.

We are alarmed at the extreme unfairness of the Prime Minister's statement to that effect, when Allan Hubbard spent 18 months of the last three years fighting life threatening cancer, which resulted in the loss of one kidney. It is only fair that the other directors present at the time begin to shoulder more responsibility.

Allan Hubbard maintains that he has committed no fraud, and has never intended to defraud anyone, and if other directors of South Canterbury Finance have done no wrong, they have nothing to fear.

While we respect the integrity of Adam Feeley and the SFO, we have completely lost any faith in the integrity of Justice Minister Simon Power, and we have lost faith in the integrity of the justice system due to the growing number of conflict(s) of interest present in this situation, which Minister Power has completely ignored, and appears to be in denial about.

We are concerned with why Graeme McGlinn, a director of Grant Thornton Statutory Managers co-authored a report for the Securities Commission, recommending statutory management for Aorangi Securities Ltd prior to the 20th June, when he has since been appointed as one of the statutory managers, and is now in the process of liquidating Allan's various business entities without consulting with Allan or any of the investors.

This is a clear and obvious conflict of interest, given that Grant Thornton had the potential to gain financially by recommending statutory management in the first place, and has been allowed to commence liquidation without any consultation whatsoever with the investors.

We hold Simon Power completely responsible for allowing this conflict to occur, and demand to know who made the decision to appoint Grant Thornton under these circumstances, and why.

ENDS.

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