Sunday, August 5 2001
Rodney Hide
Press Releases -- Justice, Law & Order

ACT MP Rodney Hide today published secret Government papers detailing Jim Anderton's breaches of the law that cost taxpayers $40 million.

"It is highly ironic that everything about this so-called 'People's Bank' is being kept secret from the people of New Zealand. I have today published on the ACT website the official advice Government received a year ago detailing Jim Anderton's breaches of securities law. The public can judge the evidence for themselves at:

LINK: http://www.act.org.nz/content/21003/jim_andertons_comments.pdf

"The papers I've published show the Deputy Prime Minister broke the law by making a public 'offer' of Redeemable Preference Shares in the People's Bank last year. He made a misleading statement by declaring the securities to be free from risk.

"Mr Anderton exposed himself, the Crown and potentially any director of the People's Bank or NZ Post to civil liability and even criminal liability: a fine of up to $15,000.

"Because of Mr Anderton's breach, the option of issuing $80 million of Redeemable Preference Shares had to be cancelled. That plan would have saved taxpayers $39.2 million.

"Ministers are not above the law: the Deputy Prime Minister must be held to account. The Deputy Prime Minister broke the law. Not only did he not resign, he didn't even own up publicly to the breaches. Instead, the Government engaged in an elaborate cover-up that cost the taxpayers of New Zealand $40 million.

"The Government must realise they cannot suppress every piece of information that doesn't paint them in a good light. There is more to come.

"I have written a complaint both to the Securities Commission and the Registrar of Companies. The Deputy Prime Minister can hardly expect New Zealand businesses to follow our Securities regulations if he is prepared and able to flout the law with impunity," Rodney Hide said.

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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