Tiny Deane has been given a fifth extension to sell his security business, Tigers Express Security. Photos / Andrew Warner
Tiny Deane has been given a fifth extension to sell his security business, Tigers Express Security. Photos / Andrew Warner
Tiny Deane has told a licensing authority hearing he believes he was “led down the garden path” by a potential buyer of his controversial Rotorua security business and has been given more time to sell it – the fifth extension granted.
Deane appeared before the Private Security PersonnelLicensing Authority on Wednesday for a hearing to determine his final penalty after he was found guilty of misconduct in June relating to the running of his security business, Tigers Express Security.
The hearing was to have taken place on August 20 but Deane asked for extensions four times to follow the authority’s ruling that he must sell his security business.
At the hearing, licensing authority head Trish McConnell concluded Deane had believed the sale was secure and had been working hard since it “fell over at the last minute” to find another buyer. She granted an extension until December 8 for him to provide the name of another buyer and other details.
Tigers Express Security is contracted by Visions of a Helping Hand to provide security at emergency housing motels in Rotorua. Deane is also the chief executive officer of Visions of a Helping Hand. It is funded millions of dollars each year by the Government to look after contracted motels used by the homeless.
In the June decision, the authority criticised Deane for being at the helm of both businesses because itconflicted with the Government’s requirement for a clear separation between social support and security services. It ruled he must sell the business or it would face losing its operating licence.
A Tigers Express Security vehicle. Photo / Andrew Warner
The authority gave him until August 20, to lessen the impact on its 50 staff.
Attendees at Wednesday’s hearing, held via conference call, included Deane and his wife, Lynley Deane, McConnell and members of the media.
Before the hearing got under way, Lynley Deane said they were not notified the media would be present. McConnell said all licensing authority meetings were open to the public however the media would be asked to leave during parts of the hearing deemed commercially sensitive.
Why the deal fell through
Deane outlined what he claimed went wrong to McConnell saying he found a potential buyer, who was a friend of his, and they both happened to have the same lawyer.
Deane said his lawyer asked him if he minded if the lawyer “went in” with the potential buyer, to which Deane said he “didn’t really care I just want it sold”.
Deane said the lawyer and potential buyer “came up with another guy to front it”.
Deane said the “frontman” “jumped through all the hoops” of getting the appropriate operating licence from the authority – which contributed to the extension requests.
Deane told McConnell: “To say it plainly, I was led down the garden path … They carried on, strung us along.”
“Technically they thought they had me by the balls and they came to my house on the Saturday and they said they want me to sign over all shares and then ‘we will pay you down the track’ … maybe. And I went ‘wow’. I more or less told them where to go … That nearly broke me and my wife.”
McConnell asked Deane if it was true there was an agreement in place and the new buyer was going through due diligence, which she said the authority had been told by Deane’s lawyer.
Deane said that was not true as he had never sighted an agreement.
Visions of a Helping Hand Charitable Trust founder and chief executive Tiny Deane in 2020. Photo / File
Lynley Deane told McConnell there was eventually a draft but it was not signed. She said they had been busy seeking other buyers since the deal fell over.
Tiny Deane confirmed the security business had about 55 full-time employees and a “big” contract with the Ministry of Housing and Urban Development. He said the other contracts were with “the iwi for guarding the lakes”, schools and a couple of private businesses “doing drive-bys [to] check the doors”.
When McConnell asked if the company had lost or gained work in recent months, Deane said a bit of both.
He said the biggest issue had been publicity, saying it was hard on their family.
“Everyone knows who Tiny Deane is in Rotorua. So the media sort of has put a dampener on our life and we have paid some huge penalties with that even not wanting to go into town because of the publicity that I mainly receive and stuff like that.”
The remainder of the hearing was held without the media present.
The authority’s latest ruling
In a minute issued to the Rotorua Daily Post following the hearing, McConnell said she was satisfied from the information provided there are “realistic prospects for an appropriate outcome from the sale and restructuring options currently being considered”.
“I am also satisfied that Mr Deane has done his best to find an alternative option since the sale fell over.”
Deane was to advise the authority on whether he had a contract for the sale or restructuring of the business by December 8. If so, he was to advise the name of the purchaser, whether there are any conditions on the agreement and the proposed settlement date.
McConnell said if the business is sold a penalty decision would be made following the settlement of the sale.
Kelly Makiha is a senior journalist who has reported for the Rotorua Daily Post for more than 25 years, covering mainly police, court, human interest and social issues.
