A march in support of Allan Hubbard and his wife Jean in Timaru. Photo / Sarah Ivey
Supporters of Timaru businessman Alan Hubbard have written to the Prime Minister urging him to reconsider the Government's approach to inquiries into Mr Hubbard's affairs.
The Government put Mr 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.
A report by Richard Simpson and Trevor Thornton of statutory managers Grant Thornton New Zealand, released on Friday, said investors in Aorangi Securities were highly unlikely to receive significant amounts of capital back before Christmas, and interest payments to them remained suspended.
And about 300 investors in Hubbard Management Funds (HMF) were told that the company overstated its value by at least 25 per cent on March 31, reporting non-existent investments and cash balances.
HMF assets were worth only $61 million at the end of March, not $82m as stated.
In its letter the Stand by Hubbard group said the Government's approach was divisive and unfair.
And "the only evidence the government has produced, remains speculation and rumour, with no evidence whatsoever to support the reports so far produced", the letter said.
The group appealed to Mr Key to extend the same compassion toward Mr Hubbard that he had to investors over the years.
In a statement on Friday Mr Hubbard said he felt ambushed by the statutory managers, and disappointed not to have had a chance to review a the report showing a significant shortfall in one of the managed funds.
Mr Hubbard said that five weeks ago he had submitted a proposal to the statutory managers and Registrar of Companies for the Aorangi and Hubbard managed funds, but had received no response.
He felt he and his wife Jean had been attacked personally.
"Not to have had the courtesy of a copy before its release, let alone the opportunity to review it, is very disappointing," Mr Hubbard said in a statement.
"I have to say that I am very disappointed that while they have continually told me to refrain from speaking about these issues in public, which I have respected, the statutory managers ambush me in the media in this way."
Separately, South Canterbury Finance, a finance company associated with Mr Hubbard which is not in statutory management, placed a trading halt on its listed securities pending an announcement. It is covered by the Crown Deposit Guarantee Scheme and has been in talks with potential new investors.
- NZPA
