Statutory Management for Hanover and other companies

As a result of another finance company in trouble, Investors are shattered that the government did not step in immediately after Bridgecorp fell over.

One year since, the Minister of Finance is still silent and ignoring New Zealand’s voluntary Kiwi Savers. This is the same Minister who said the Sub Prime would not affect New Zealand.

The Minister of Commerce made statements in March this year, in response to EUFAs call for the Reserve Bank to act under section 36, that if every finance company fell over in New Zealand it would not affect the New Zealand economy. 26 Companies in trouble must effect the economy.

All investors who work with EUFA are insulted at the lack of protection of their hard earned money by the State representatives, who say they can do nothing.

If the Securities Commission had done their job over Bridgecorp in 2003, when they knew there were issues of falsified figures, investor confidence in New Zealanders would not have shattered as Bridgecorp would have been held to account and millions would not have been lost or gone missing.

Lack of investor confidence has contributed greatly to where investor confidence is today. People are even becoming worried about the trading banks. That has to be a concern and a clear warning.

Coordinator of EUFA, Suzanne Edmonds said this morning “Investors lives are in total despair coupled with extreme insecurity, such as losing their homes, while New Zealand sits back watching the games and neglect by those who have a duty of care, slopping around discrediting us all.”

Accountability will only come with the people standing firm and demanding governance and EUFA members continue to seek this accountability from all who are responsible. Mrs Edmonds added “The game of ‘Hide ‘n ‘seek’ is over.”

Gray Eatwell Finance spokesman for EUFA is calling for all finance companies to be immediately put into statutory Management. Mr Eatwell said from Tauranga this morning “ We have to stop the same directors continuing to mismanage their companies while in moratorium to ensure investors are protected”..... Why should it be investors that take the fall?...... Its is time for this to stop”