Authority Negligence now out in the open

Authority Negligence now out in the open

The Corporations (Investigation and Management) Act 1989 [statutory management] was passed to protect all parties involved with a company from dishonest or reckless practices. It was not intended as an alternative to other insolvency laws, while in fact it offers some protection from premature actions being taken against a company.

It appears that, (apparently INCLUDING the Authorities), there is a misunderstanding of the fact that the determination to pass this Act after the 1987 crash, was specifically to prevent managers of troubled companies grabbing any money that’s left for themselves.

Unfortunately the investing public of New Zealand and a wide raft of business creditors of the finance industry have been betrayed by the Government and its agencies blatant failure to recognize the obligation to enforce this Act.

This prudent action was recommended to Government by a past Chief of the Serious Fraud Office in 2007, therefore if the Statutory Authorities had upheld their duty then, the dire situation currently faced by Mr. Hubbard’s companies would most likely have been averted.

While thousands of Mum and Dad investors have suffered the indignity of watching the engineers of company failures that lost their money walk free to enjoy luxury lifestyles with their hard earned savings of a lifetime.

Accordingly supporters of Alan Hubbard need to be asking the hard question of Minister Power, as to why the law has been imposed on his companies, while the authorities fail to enforce the most basic of laws of honesty on so many others.

As a direct result of the negligence of the State authorities, Billions of dollars of New Zealander’s savings have been squandered, for which a belated attack on the last man standing will do nothing to remedy the situation for the victims.

Exposing Unacceptable Financial Activities (EUFA) stands by the long standing call on Government that a top-level inquiry into the nonfeasance of the State authorities is essential to the process of restoration of public confidence and justice deliverance.

ENDS

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