Why Have Investors Been Treated As Cattle Class?

25 August 2010

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

There have now been 60 finance companies involved in the finance disaster.

All Investors who have suffered losses have rights to protection, no matter how small the finance company and there is enough law to see they get it. However while not lessening the importance of losses from small finance companies, I will focus on the larger companies, because they caused the major stress on the market seriously affecting the smaller companies.

The Government and authorities.

Meet with Minister Simon Power and he listens, he doesn’t debate (Dalziel debated) and you leave feeling he has heard the peoples message and is committed to do something for the public he works for. He sees enough evidence for him to go back to his people to get this mess sorted.

After a while, the Minister writes back to us and delivers a “not us” - “but we will put the future right” scenario. Does the Minister not understand that when ‘Dad says you can drive his car tomorrow’ Dad knows tomorrow never comes. The future is of no interest to current victims of this financial abuse.
In his letter of reply to our meetings, the Minister delivers a message that you /we (the decent people in Society) are wrong and the Authorities are right. He states he has confidence in these authorities! How can he now after the HANDLING and PROCESS of the Hubbard affair. That’s a total disaster for all the authorities involved and the Government.

The Ministers paid people, sort it out, to shut the people out and to protect themselves and the Ministers image. We all say we will vote the MP’s out, BUT that doesn’t actually work, besides the same officials and advisors just sling mud in Ministers eyes whatever party. They are a bigger force than the Ministers and sadly these new age Ministers bow down to the bullies to sustain an image.

Bridgecorp - The first domino fell.

This crisis basically started with lack of governance over Bridgecorp. When it fell Investors lost by further lack of governance. The Securities Commission wouldn’t listen, on our behalf, to the ex SFO chief Chas Sturt. His advice was to put Bridgecorp in Statutory Management rather than use the insolvency process of a receivership. The Corporations (investigations and Management) Act 1989 is adequate legislation if applied as it was intended. Jane Diplock knew better than Mr Sturt! The Receivers have taken $8m in fees out of $18m recovered.

Bluechip

Talented people like Paul Dale called for Statutory management of Bluechip. Minister Dalziel said to Gray Eatwell and I in a meeting in Jeff Meltzer’s office “ If Jeff wants Statutory Management Jeff will get it.” Why did it not happen?

Hanover investors were led to the slaughter by PWC.

Hanover was in trouble and the goings on between January and July 2008 defied belief, yet PWC, manipulated investors to agreeing to a moratorium. This was just leading the investors to the slaughter when they thought they were going to greener pastures. It was a total con job to protect Hanover Directors and Shareholders. The investors saw it as a catch 22 - receivership or moratorium. BUT it was not. Statutory Management was a far better option to protect all parties, including investors and the Government refused to go there. (Again)

What request did the Minister make of the Securities Commission (under the Securities Act 1978 - Functions of Commission 10/(abc) - to ensure all investors funds were secure and the public interest served.

50+ other companies were mostly all intertwined in the big companies and there was no protection given to investors. What questions did both Dalziel and Power ask?

The laws are there to protect New Zealanders. The Government want to write more law BUT after the 1987 crash the Corporations (Investigations and management) Act 1989 was passed for exactly the reasons put before us over the finance crisis. It has been barely used since 1989 WHY?

What a mess the Authorities and Government have made of our economy.

Public confidence will never be restored in the finance markets with the current attitudes and acceptance of the finance crisis. Abdication of duty can never build trust.

ends

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