Parliamentary Inquiry called for into Securities Commission

EUFA members are calling on all investors from all failed finance Company and all New Zealanders to sign an open letter to the Prime Minister for a Parliamentary inquiry. The inquiry called for is into the Security Commissions failure to monitor the ‘Enforceable Undertaking’ entered into on 17th August 2003 with Bridgecorp.

The Enforceable Undertaking covered Bridgecorp presenting misleading information engineered to mislead prospective investors as to the true financial position of investments offered.

The result of the failure to ensure compliance, led to many investors losing their savings invested based on falsified financial statements provided by Bridgecorp.

EUFA Finance spokesman Gray Eatwell said yesterday “Now that Bridgecorp Directors have been charged with offences under the companies Act, in relation to the Bridgecorp prospectus, it will be hard for the Politicians to ignore this one”

Each investigation being had at present such as the SFO and Commerce Commission, will add to the big picture and New Zealand will start seeing the perpetrators being held to account and some incompetent heads rolling.

The Securities Commission have been negligent in upholding their mandate to maintain investor confidence by their failure.

Coordinator of EUFA said from Auckland today “ People have asked why are you just calling on Bridgecorp’ and our answer is that it was the Bridgecorp collapse that knocked over the dominos creating a insurmountable amount of depleted consumer confidence….. This is a team effort to seek accountability across the board and we must build the collectiveness to be heard”

With such a large number of finance companies having taken investor funds from real kiwi savers the Government must take action.

The Hanover failure is catastrophic and has hit investors very hard as Hanover presented a very strong front giving confidence.

At an investor meeting yesterday, held by an Auckland law firm Grimshaw and Co, it was very clear when Mrs Edmonds spoke of the bigger picture that Investors are in agreement with the collective approach at the same time they investigate taking action through the courts against those who negligently advised them on their investments.

Grimshaw and Co have offered a very positive approach to Investors and EUFA members to ensure everyone is able to seek sound legal advice on their individual case.

(Open letter to sign on www.eufa.co.nz)