24 Jan 2011

Hubbard supporters call for urgent review

1:52 pm on 24 January 2011

Supporters of Timaru businessman Allan Hubbard are calling for an urgent review of his statutory management.

Mr Hubbard and his wife were placed under statutory management in June, along with seven charitable trusts, Aorangi Securities and, later, Hubbard Management Funds.

A group representing more than 200 supporters and investors has written to the Commerce Minister, Simon Power, asking him to review the decision to put Mr Hubbard into statutory management.

Spokesperson Jan Macpherson says the decision was based on incorrect information, and followed unfair processes.

She said no-one had lost money and the companies were not insolvent when Mr Hubbard and the companies was put into statutory management.

The 700 investors involved cannot move forward until the matter is sorted out, she says.

Mr Power says he will not comment while statutory managers are in place, and the Serious Fraud Office is investigating.

The statutory managers have previously warned that investors in some of the entities will be unlikely to get all their money back.

Their examinations have also revealed poor record-keeping, high levels of lending to other companies connected to Mr Hubbard, and high-risk investments.