25 Jun 2010

SCF link not seen as conflict of interest - commission

12:05 pm on 25 June 2010

The Securities Commission says a link between one of its members and South Canterbury Finance does not constitute a conflict of interest in its action against Timaru businessman Allan Hubbard.

On advice from the commission, the Government moved on Sunday to place Mr Hubbard and his wife, Margaret, under statutory management, along with Aorangi Securities and several trusts.

Mr Hubbard is also under investigation by the Serious Fraud Office.

Commission member Simon Botherway has now declared a potential interest in the case, as the hospitality business of his brother Jonathan Botherway was put into receivership by South Canterbury Finance last year.

Mr Hubbard, 82, is the former chairman of South Canterbury Finance. However, SCF is not under statutory management.

The commission says it is satisfied Simon Botherway's connection to South Canterbury does not create a conflict of interest in relation to Mr Hubbard, his wife, or the other entities now under statutory management.

hundreds of people rallied in Timaru on Friday to support Mr Hubbard, who says investigations into his affairs will prove he's done nothing wrong.