Old documetns discovered - Investors should respond
The speech copied below was presented in 1990 in the lead up to the election. It is chilling evidence of almost 2 decades of governing and MPs promises and failure to protect New Zealanders.
Broken promises of 18 years have allowed thousands of New Zealanders savings to be stolen again and again.
ADDRESS TO AGE CONCERN - Senior Peoples Network on White Collar Crime at a Seminar held at Baycourt, 25th June 1990, by Robert Anderson MP Kaimai.
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With little notice and without much thought the Financial Markets were freed up - DEREGULATED.
There may have been some advantages to the Nation and individuals but most people were not prepared for the change - least of all the Government.
NO NEW RULES OR REGULATIONS WERE PUT IN PLACE TO COPE WITH THE CHANGE.
There have always been business people prepared to be involved in shady deals - 'White Collar Crime' is not a new phenomenon - but the scope and volume has increased alarmingly - many ordinary people have suffered and some with disastrous results.
Until recently we have been a relatively corrupt free country, but supposedly respectable and sound companies have been involved in unethical and often illegal practices at the expense of many of us.
Our reputation as caring people has suffered and we have become more selfish - which in some instanceses is understandable - because it has become more difficult to survive. But in other cases not understandable or forgivable because actions were driven by greed and outright theft.
A number of people here today may have had investments in Companies such as RSL, Landbase and Burbury.
The Companies offered competitively high rates of interest and were advertised on television and in respected journals as Blue Ribbon Investments.
We now know that Companies, such as Landbase, operated on deliberately inflated Land Valuations upon which they took our large morgages subscribed to by the Public.
The Leader of the Opposition, the Hon Jim Bolger, brought these shady practices to the attention of the Government and the people in May 1988 - the so-called "GANG OF 20" were exposed publicly along with their shameful deals that took away the life savings of many elderly people.
Mr Bolger questioned the then Minister of Justice, Mr Palmer, on a regular basis, day after day in Parliament - but there was no acceptance by Government that a problem existed, much less do anything about it.
On June 1988 Mr Palmer had the gaul to tell parliament that RSL was a sound Company and that investments were safe - on the basis of that assurance, many New Zealanders left their investments in RSL and some new clients invested in the Company.
Shortly after, the extent of the Company's illegal and unethical practices were revealed as the Company's Financial position went from bad to worse with devastating losses for many people.
In August 1988 the Hon Jim Bolger introduced a Bill into parliament to set up a Commission of Enquiry into White Collar Crime. The Commission would have been given wide powers to investigate and those found guilty of illegal practices given severe terms of imprisonment and fines.
But no, the Government rejected the bill and another year passed before they introcuced legislation to set up the Serious Fraud Office.
Some people say it is never too late but in this case it has been for many people.
POLICY
WHITE-COLLAR CRIME
We must address the high level of Corporate fraud and White-collar crime that has increased rapidly over recent years. We must also be very concerned by the incidence of dishonesty among professionals in positions of trust.
The Government's actions in this area have been both timid and ineffectual; a reaction to public outcry rather than a belief that the market should operate along clear guidelines designed to prevent dishonest and fraudulent activity.
THUS NATIONAL WILL:
- enforce tough criminal sanctions for fraud and other dishonest activities
- introduce effective laws to prevent insider trading, protect the rights of small and minority shareholders and prohibit directors and management from exercising their unfair advantage
- enforce strict accounting standards which will require compnaies to fully and publicly disclose their true financial position
We are convinced that the people want a strong message sent to the courts. We do not want slick operators in smart suits driving around free when they have committed outright theft and have been totally dishonest for personal gain. Neither do we want those people to receive a smack on the hand. They must be locked up and kept away from society for as long as possible.
The mental pain and anguish felt by the victims is often more serious than physical harm, and can last longer.
It is not good enough to say that all those investors were greedy - they had trust in the system and the professional people invoved.
There are two messages:
One, to the Government to put the proper legislation in place and act in the interests of ordinary people.
The other, to the professions to tidy up their act and not allow a few despicable people in their ranks to destroy their intergrity as a whole. At present their image is tarnished and needs to be restored for the public good.
(exposing UnacceptableFinancail Activities)