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Home / New Zealand

Cocaine case risk to firm says CEO

By Louisa Cleave
11 Aug, 2005 10:23 AM2 mins to read

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A cocaine conviction against David Henderson would, in the worst case, lead to the failure of his successful property development company Kitchener Group, says its chief executive.

Henderson last week admitted attempting to buy cocaine and seeks a discharge without conviction.

The 51-year-old multimillionaire says the impact of a conviction on his business and ability to travel overseas would be disproportionate to the offence.

Judge Simon Lockhart, QC, will deliver his decision on Tuesday.

Kitchener Group chief executive Chris Aiken this week told the court of the impact of a conviction on the company.

Most of Mr Aiken's evidence has been suppressed because of commercial sensitivity but in the affidavit he states: "A conviction for a man of David's current high standing, track record and importance to this business for an offence of this nature would have an impact of disproportionate magnitude on this business and the many people who rely on the confidence his reputation has built to date.

"Best case we would lose significant market presence and suffer large financial losses and in the worst case, business failure is a real prospect."

Mr Aiken said the drug charge had created "significant exposure" for the Kitchener Group, of which Henderson is the single shareholder and director.

He said Henderson's name was mentioned in emails he got after news broke that police had busted an alleged drug ring in central Auckland. Henderson, who is not alleged to have been part of any drug ring, was overseas at the time.

"I received numerous telephone calls ... in particular from several lenders," said Mr Aiken.

Asked in cross-examination whether Kitchener Group would fail if Henderson was discharged but then run over by a bus outside the court, Mr Aiken said: "There is much less risk of Kitchener Group failing if David is hit by a bus than if he is convicted."

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