Friday, July 16, 2010

Thornton Report: Allan Hubbard's Aorangi Securities

I am not sure why Grant Thornton, the Statutory Manager of Allan Hubbard's Aorangi Securities, would be publicly releasing an interim report on Hubbard's company unless it provided a clear picture of what has been going on. It doesn't.

Best a complete investigation be done then publicly comment. Thornton's accusations have yet to be backed up by fact and while there maybe a basis for this investigation, parading it in the media before crossing the "I's" and dotting the "T's" isn't a wise move. Hubbards other business interests have and will be further affected by these claims

Having said that there are some serious issues that Mr Hubbard needs to address if true:

These are the main points Thornton has made:

1. Inter-party lending seems to have been rife with interest free loans flowing from charitable trusts to Hubbard business interests.

2. Security on some loans, while promised, seems to be missing in some cases.

3. Inadequate accounting systems


Many commentators have been calling for Mr Hubbard's neck in a noose over this but so far I haven't seen anything that would require he be run out of town. Not yet anyway.

Best they shut their mouths until the final report and any evidence is revealed.


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