EUFA calling for ROYAL COMMISSON OF INQUIRY into Finance Company Collapse

The Mascot Finance demise and the governments’ bailout for Mascot investors, has resulted in a strong and furious reaction from investors of all other troubled finance companies. Investors do not accept that the government and authorities can allow their money to simply disappear and then use tax payers to pay out a select few with tax payers’ funds.

The EUFA organisation is calling for a Royal Commission of Inquiry into all the troubled finance companies to coordinate the disparate investigations currently underway and to determine overall accountability.

EUFA members maintain the Government had an obligation to take vigorous action when the Finance Companies began hitting the wall.

The Government continues with the same message that they will fix future legislation. They are not responding to calls for current law to be implemented and are failing in their duty to hold accountable the hundreds of Directors, CEO’s and management teams for acting recklessly in business and operating a model doomed to fail.

The magnitude of the situation is a disaster that individuals can not recover from. The Government are duty bound to act in the best interest of the economy and use resources to recover the money that is left.

The Crown Deed of Guarantee document, signed by Mr John Whitehead, for and behalf of the Minister of Finance states

Background ‘A’

Given turmoil in the world financial markets and the need to maintain public confidence in New Zealand’s financial system and in order to maintain the confidence of general public depositors in New Zealand financial institutions such as the Principal Debtor it appears to the Minister of Finance that it is necessary and expedient in the public interest that the crown guarantees certain obligations of the Principal Debtor.

Coordinator of EUFA, Suzanne Edmonds said today “Investor confidence will not be restored until confidence in Government is restored. Investors were hopeful that a new government would act in their best interests and investors certainly hope the Government will hold a Royal Commission of Inquiry... bailouts in a sloppy way are not the answer”