Inquiry into finance company failures

The media release put out by Chairperson, Hon Lianne Dalziel, advises that ‘ the Commerce Committee has agreed to conduct an inquiry into finance company failures’.

The headline is contrary to the terms of reference and there is limited room to move in the inquiry for current victims.

EUFA have called for an inquiry since late 2007 into the failure of governance allowing the PONZI type schemes to proceed. Today’s announcement was bitter sweet news for investors.

Tax payers will foot the bill for the inquiry. Victims who are not being protected by past or present actions of authorities, will gain little from the outcomes of the committees work, as the terms of reference offer little in terms of holding the industry and authorities to account.

Suzanne Edmonds of Tauranga, Coordinator of EUFA, said “The current laws are not being enforced now so it is a waste of resources to hold an inquiry with the view of making new laws, until the current laws are enforced and the tsunami is cleaned up............people’s lives need rebuilding after the dramatic effects and losses incurred and its unlikely this inquiry will be able to achieve that under its terms of reference and structure.

The Government needs to be prepared for ongoing fallout as people face losing their homes, continue to become ill and ultimately lose their lives as a result of the mass malpractice this country has endured. The Government has obligations to uphold the law.

In the media statement today the Committee stated it “has made a call for written submissions on the terms of reference, with a closing date of 15 October 2009.”

On their own, the written submission will be meaningless. Victims of the finance crisis must demand the Committee meet with groups and in some cases individuals, to hear firsthand the savage nature in which the Finance Company Directors’ and others have devastated people’s lives.