The following is a statement from Allan Hubbard on the receivership of South Canterbury Finance and comments on other parts of his former empire.
In it he take no blame for the collapse and in fact blames the Government for moving to place his other business into statutory management for his business problems.
He has lost most of his assets but so have have others who invested with him, number one being the hard pressed taxpayer who has just forked out $1.6 billion to bail SCF out.
I will give him kudos for fronting up but to deny his substantial part in this whole fiasco is simply ignoring the reality of the situation.
Like other finance company heads to have been dealing cards from their sleeves, Allan Hubbard should go to prison.
Allan Hubbard's Statement
Following today’s announcement that South Canterbury Finance (SCF) is to be placed in
receivership, majority shareholder in the company, Allan Hubbard, said he is firmly of the
view that if he had not been removed from the board of the company, and subsequently
placed in statutory management, he could have helped to save the business.
“It has been deeply frustrating and hurtful, over the last nine months, to have been sidelined
by my fellow SCF directors, and subsequently straight-jacketed by the Government
regulators, from working to save South Canterbury,” he said.
“Since the impact of the global credit crisis became obvious, I have done everything I can to
save SCF, including investing hundreds of millions of my own investments into the company.
“I have always attempted to place investors’ returns first, and my personal financial interests
as secondary, and as the severity of the global credit crunch became apparent, I moved
quickly to inject my own assets into South Canterbury,” he said.
“For me it has always been a matter of trust and personal integrity to investors. In a crisis like
that, you do what you have to do to save the business.”
He said that in this day and age that might sound old fashioned and that he has resolved to
fight back to protect his and his wife’s reputation.
He went on to say that when they were personally placed in statutory management on June 20
this year, that was a serious blow to them, South Canterbury Finance and “unbelievably short
sighted” on the part of the Government which acted on the advice of the Registrar of
Companies.
“Surely they realised that by freezing me out and taking over control of my affairs that they
would be dealing a body blow to South Canterbury Finance?”
Big day for the regulators and a sad day for investors
“It was a big day for the regulators and a sad day for investors,” he said.
“Instead they bring down the boom, take me out, freeze my access to my personal funds and
now so many families, small businesses, farms and enterprises, throughout the South Island
in particular, are going to be seriously suffering,” he said.
“It was an unnecessary, knee jerk bureaucratic response and it required a strategic solution
not a sledge hammer.”
Mr Hubbard said that his action was deeply hurtful and it was painful to be forced to watch
events, announced today, unfold from the sideline.
“I have spent my life supporting businesses, investors and charities and my track record
speaks for itself,” he said. “I have been prudent and diligent, to the very best of my ability,
and have always been deeply respectful of the trust placed in me.”
Mr Hubbard said that while he acknowledges that some may consider his management
systems old fashioned he has never defrauded a single investor of a single cent.
He said that when he was ambushed last week by the statutory managers, with their second
investors’ report, and with no advance warning or the courtesy of a copy of their report, he
resolved to have more to say.
He said today’s announcement on South Canterbury’s fate had hardened his resolve.
“I will be providing my own analysis, with the assistance of my team of professional legal
and financial advisors, to put my side of the story and I will be taking this matter further,” he
said.
“I cannot allow my reputation to be savagely attacked by this shameful process and all of
those who trusted Jean and me, over so many years, to allow this tragic set of events to go
unanswered,” he said. “Those who care about us know I am unwell and that hardens my
resolve.”
Mr Hubbard said he would not be commenting further until he and his advisors had prepared
their case against the statutory manager’s report and their response to today’s announcement
regarding SCF.
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