ALLAN HUBBARD
Story courtesy of msn
Allan Hubbard is blaming Government regulations for the failure of South Canterbury Finance.
"It has been deeply frustrating and hurtful, over the last nine months, to have been sidelined by my fellow SCF directors, and subsequently straight-jacketed by the Government regulators, from working to save South Canterbury," he said.
The Government this morning paid out $1.7 billion to cover investor losses - about $150 million more than it was required to - as New Zealand's largest locally owned finance went into receivership.
South Canterbury Finance (SCF) has $1.2 billion in retail deposits and a further $350 million in other securities that are covered by the Government's Retail Deposit Guarantee.
Hubbard said in a statement that he had poured hundreds of millions of dollars into SCF since the global financial crisis.
"I have always attempted to place investors' returns first, and my personal financial interests as secondary, and as the severity of the global credit crunch became apparent, I moved quickly to inject my own assets into South Canterbury," he said.
Hubbard said it was a "blow" to he and his wife Margaret - also known as Jean - when the control of their company was taken away from them by the Government back in June.
"Surely they realised that by freezing me out and taking over control of my affairs that they would be dealing a body blow to South Canterbury Finance?"
He said today was a big day for the regulators and a sad day for investors.
"Instead they bring down the boom, take me out, freeze my access to my personal funds and now so many families, small businesses, farms and enterprises, throughout the South Island in particular, are going to be seriously suffering,"he said.
Hubbard said some people may consider his management style old fashioned but he has never defrauded a single investor of a single cent.
"I cannot allow my reputation to be savagely attacked by this shameful process and all of those who trusted Jean and me, over so many years, to allow this tragic set of events to go unanswered," he said.
Hubbard said he would not be commenting further.
Timaru's local MP Jo Goodhew was today urging people to remain calm.
``I know that everybody is very, very concerned about what this is going to mean for our community, understandably so,'' Goodhew said
"It is wider than that and of course that concern will remain until the nature of how this will be treated by the receivers is known."
There has been strong support in South Canterbury for company founder Timaru businessman Allan Hubbard and backers recently wrote to Key asking him to reconsider the Government's approach to inquiries into Mr Hubbard's affairs.
The Government put Hubbard and his wife under statutory management on June 20, along with seven charitable trusts, Aorangi Securities, and later, Hubbard Management Funds.
The Serious Fraud Office is also investigating the couple.
SCF is separate to those businesses but Goodhew said some people were confused.
"I think that anybody who is not understanding the separation is concerned about government action," said Goodhew.
"Both the statutory management process and the process that's being undertaken by the SFO have to run their course. I don't comment on what's happening with them other than to say that I hope they can run their course and come to a conclusion as soon as possible for the sake of all of the investors and for Mr and Hubbard as well."
Asked if she was concerned there would be a backlash against the Government in her electorate, Goodhew said she was not worrying about that right now.
"I understand that when people are anxious about something they look to the Government for assistance, therefore I understand that anxiety sometimes translates into them being angry.
I should be worrying at the moment about meeting my constituents' needs, not about next year's election," she said.
"I think people just have to try and be patient until they see how this is going to play out - but I know that patience is a difficult thing to find when you are anxious."
The 'Stand By Hubbard Group' - which describes itself as deeply concerned about the actions of the Government in relation to Hubbard - has set up a Facebook page for fellow supporters.
Since the announcement of SCF's receivership friends of the page have largely blamed the Government, SFO and statutory managers.
"The end of South Canterbury Finance, our greatest investor in South Canterbury, well done SFO you have seriously crippled our economy," Jonny Stanley wrote.
Suzanne Edmonds said it was as Hubbard's supporters had predicted a long time ago.
"The authorities have stuffed the NZ economy...they have failed to police the crooks...let them lead the high life...let the fire sales drive down values and distroy investors confidence (sic)," she said.
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