EUFA turns the heat on Auditors and Trustees

MEDIA STATEMENT
26.08.08

EUFA
(Exposing Unacceptable Financial Activities Inc Soc)
www.eufa.co.nz

Auditors and Trustees of all failed finance companies have a responsibility to investors to seek accountability from the Directors and company management. They have a duty to resolve the serious issues of any mismanagement and deal to those who have mismanaged and misrepresented their businesses.

With so many companies in trouble and the claim that the troubles come from Investor withdrawals - it is time the trustees and auditors held their own rigorous investigations. EUFA can report that many investors have not managed to get their money out from investment as claimed, and the call on funds is not proven but obviously an excuse to put the blame onto investors. Lack of new investment and rollover investment may have contributed to company woes but this proves the finance Company model was seriously flawed and doomed to fail.

Allegations of White Collar Crime from investigations in some companies, is a tip of a very large iceberg. Many of the companies were associated to each other indirectly or directly making a very valid reason for an investigation into all troubled finance companies. EUFA continues to call for an inquiry with wide terms of reference.

Linking company directors shows a very big web and in a small country like New Zealand it is relatively easy to trace. Financial advisor companies are joined into the web which certainly worries investors as does the appointment of Donal Curtain to the Commerce Commission.

Coordinator of EUFA Suzanne Edmonds said this morning. “It is all coming out in the wash and those who are embarrassed by their roles should stand up and be counted. Furthermore - while the guilty parties play the blame game, making excuses and hiding behind their security gates - the very highly paid lawyers fight against justice.“

Investors are suffering and their lives are not getting any easier. With the current uncertainty, investor confidence is still plummeting with a fear of banks being the next on the row of skittles.

Mrs Edmonds added “Consumer confidence could build quickly if the people in the loop took some proactive and affirmative action, with those who are responsible being held accountable”

ENDS

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