TV3 60 Minutes indirectly reveals - NZ Authorities ignored warnings and coming in too late
The TV3 60 minutes story out of America last night, on the performance of the U.S.A Securities and Exchange Commission (SEC) is chilling to EUFA members.
Since October 2007 on behalf of EUFA members its executive has claimed that the State authorities such as the NZ Securities Commission (SEC COM) have been failing in their duties to protect investors. The investors affected by the abdication of duty are reportedly totaling over 180,000. The EUFA organisation does not have the resources or expertise to carry out private investigations but have had enough information to alert the authorities responsible to enable investigations to take place.
Many NZ businesses in the Finance world knew of, or suspected, the Finance companies were operating using unacceptable practices and that investors funds were at risk but neither the SEC COM nor the business people took appropriate action.
USA hero, Harry Markopolos, who was the whistle blower on Bernie Madoff’s Ponzie scheme was also ignored. Harry Markopolos put together a 29 page document proving fraud but the U.S.A Securities and Exchange Commission (SEC) “didn't understand the vocabulary”.
New Zealand victims face an identical set of circumstances over the finance company crisis. It is reported that yesterday the SEC COM announced they will scrutinize the quality of corporate governance.
In the USA Harry Markopolos claims the SEC have come in after the crime of Bernie Madoff has been committed and that they are “toe tagging” and counting the bodies after the fact and will work out who the crooks were.
The announcement by the SEC COM re corporate governance is a parallel to the Harry Markopolos / Bernie Madoff / USA situation were the governing authorities have failed to listen or enquire. The SEC COM have also failed to fence the cliff top and are attempting to redeem themselves by being an ambulance at the bottom.
In an attempt to discredit the EUFA organisation the members have been ridiculed and ignored. Previous calls for an inquiry or working parties into the financial collapse have been indecently dismissed. The current petition tabled in Parliament calling for a Royal Commission of Inquiry into the Finance collapse appears already doomed before any merits have been allowed to be put forward by investors to the correct forum.
The incompetence identified by Harry Markopolos where he claimed the SEC were “incapable of finding fraud” mirrors the comments made by the NZ Companies Office report tabled in Parliament last Friday.
EUFA publicly warned authorities and government that to ignore what was happening in the Finance industry would be like ignoring a tsunami warning and it would be no use waiting for the waves to be crashing on the beaches. Now commentators are saying a tsunami has hit. In America if warnings by Harry Markopolos had been heeded many lives would have been protected from the suffering and in New Zealand the same applies.
The actions of New Zealanders operating in the finance industry and negligence of Authorities in this country can not be blamed on the recession or an overflow from America as the unacceptable practices and failures by authorities happened in NZ. The lack of governance in NZ and in America has caused immeasurable suffering, therefore governance and accountability must continue to be expected. The non performance of authorities since they were alerted to New Zealand’s pending calamity has simply escalated the crisis.
A revision today of EUFA’s records of communications to Authorities, publicly or directly shows a clear and constant message seeking accountability and action from those in positions to act.
ENDS
Contact Suzanne Edmonds
0274 476976
Watch the 60 Minutes interview on the link below
http://www.cbsnews.com/stories/2009/02/27/60minutes/main4833667.shtml