Cabinet braces for Hubbard SFO fizzer

Allan Hubbard. Photo / Supplied

Cabinet is bracing itself for the possibility that the Serious Fraud Office's investigation into the affairs of South Canterbury Finance founder Allan Hubbard will not find any evidence of complex fraud.

Political sources told the Business Herald that Cabinet ministers were briefed this week in broad terms on the investigation's progress.

The Government seized control of the South Island millionaire's finances on June 20 after a recommendation from the Securities Commission.

At the time of the appointment of the statutory managers Commerce Minister Simon Power said the main reasons for applying statutory management were "to prevent fraud and reckless company management, to protect investors and to enable the orderly administration of a company's affairs".

SFO director Adam Feeley would not comment last night on the outcome of his office's investigations.

"I expected a preliminary report will be with me by next week, and I stress preliminary report," said Feeley.

"This will state there is no offending, or we still need to do more work on this or there are matters that will be charged.

"I cannot give an indication - but we are well advanced."

A decision not to proceed against Hubbard would inevitably result in some embarrassment for the Cabinet ministers who approved the statutory management.

But Feeley said it's "not a popularity contest".

"We're going to get it right and in getting it right it will almost inevitably not be popular with someone."

He has brought top Auckland QC John Billington on board to advise on the issue.

Feeley added it was "becoming increasingly clear what the issues are".

The office's performance target for such cases was to reach a decision within 12 months. "I can assure you it won't take that much," Feeley said.