Why Only Hubbard?

Why Only Hubbard?

Investors, who have lost money with around fifty mismanaged finance companies, including Bridgecorp, Hanover, St Laurence and Strategic, are up in arms.

They want answers from the Minister as to why only one finance company is singled out and been put into Statutory Management. Mr Hubbard, an ill senior citizen, cannot be singled out when others have been allowed to go into moratorium and receivership under similar circumstances. Investors believe this latest move by government proves the Authorities have been negligent to date.

While it is agreed that Statutory Management may be a necessary move to protect all parties in Hubbard’s case, investors question “why only Hubbard?”

The authorities have evidence that many finance companies have committed offences. Not one of the failed finance companies have been put into statutory management since the finance collapse began yet obvious malpractice has occurred.

Coordinator of EUFA said from Tauranga today;

“ Investors are asking why? They are asking is it political because of government guarantees? They are asking is an ill elderly man easy pickings to use as an example to allow the Government to bury the past and simply act on the now.... Mrs Edmonds adds “These are reasonable questions to be asking”

The government officials and Members of Parliament know of the serious mismanagement, crimes and general mass malpractice that have been practiced in sectors of the finance industry, yet the Securities Commission has taken this move against only ONE market player. This is not an acceptable level of law enforcement nor is it at the level the Minister has promised.

The Corporations (Investigation and Management) Act 1989, is a sound act, isn’t rocket science and is broad enough for the government to use to protect all parties.

The Minister of Commerce, Hon Simon Power demonstrated to New Zealand his power this week and now needs to open up what officials and government are treating as the “cold cases”. The very least “reckless” trading has occurred in most cases of troubled companies. The act deals with “ reckless trading” on its own.

ENDS

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