Promotion of Accounting Reform as the most effective Pathway to a Fairer Safer and more Prosperous Society. Comment and Support from all quarters is Sought to straighten out NZ's problem
September 2017 Edition
Now for the latest.
Today Tue 5 October 2017 a fully bench of the Supreme Court of New Zealand commencede a three day hearing of the ultimate appeal by the appellant in the case Houghton v Saunders. Eric Houghton is a representative shareholder who probably or possibly was caught out by the 2004 Feltex IPO scam. The possibility exists however that he was one of the scammers. Either way he has gone along with the quarter hearted or eighth hearted appeal which the judiciary, appointed by and acting for the corrupt Government have found easy to dismiss.
We have formally complained to RNZ about a short news item this week. It went like this:
I wish to complain about a segment of RNZ’s Morning Report Business section broadcast about 6:52am on Monday 14 August 2017. The item concerned some adjustment to the structure of a finance and share-broking company FNZC. I assume this company was First NZ Capital which has changed its name not long ago. This explanation should have been made. The news item was about what was called a “new operation” (other news outlets have respectively called it a “new offering” and “new fund” and new “initiative”). There is indication that whatever it is the new operation offers it is nothing that the firm would not offer in the past. All that can be said is that they are going to use a new name, Principal Equity, for certain large transactions and these transactions will be under the control of a new staff member. Michael Walmsley.
I can find little information about Mr Walmsley at Macquarie Bank in England except that he was a vice president, a senior one, but how many vice presidents does an outfit need. Vice President is a term used by Credit Suisse and others to lift a person’s status for some reason. I don’t think it entitles one to go anywhere near a board meeting. Even if the President becomes incapacitated it is unlikely a vice president will be called upon. Macquarie like Hunter Hall are apparently Australian companies with offices in London (for status reasons) who do dirty work for their Government in return for favours that keep them afloat or thriving. It was said that Feltex directors had to travel to London to meet with Peter Hall to “get” a major subscription (really donation) to the IPO. Similarly Hall gave evidence to a Feltex Court case by video from London. About 2005 the NZ Accountants Institute put at the front of its annual report a story of an NZ Accounting graduate (possible Chris Liddell) going on his OE and soon finding himself vice president of Credit Suisse.
My complaint is that FNZC is a very crooked organization and RNZ has not warned of this. It is just taken its press release at face value. Clearly a costly scam is in the wind.
FNZC had up until about 2002 been the NZ branch of Credit Suisse and it still has very close ties with this international firm. In year 2000 Credit Suisse acted for both parties when the ACC purchased shares of National Mail from Cliff Cook for $0.5m. A week or so later National Mail announced it was going out of the mail business and ACC suffered a “loss” of 95% of this payment. It is clear ACC and Credit Suisse as well as the wider Government (both main parties at least) knew what was going on. This was a misappropriation of Government (ACC) funds for some improper purpose desired by the Government. Mr Cook no doubt applied some of the funds for such a purpose although it was also no doubt something of a trial run. ACC (Nicolas Bagnall) advised that they took a positive view of National Mail because Peter Fitzsimmonds had been appointed a director a few months earlier. He would also know that Fitzsimmonds and Cook knew each other well being Chairman and largest shareholder respectively in the listed company Metlifecare. The Government watchdogs looked the other way. To sidetrack matters questions were raised as to whether this was a case of insider trading. It was not. All parties knew that National Mail had not gained enough traction and its mail operations were closing. All parties knew that this was theft of money earmarked for Accident Compensation purpose for use in secret and probably immoral purposes with the public being told or given the impression that it was an unfortunate trading loss.
During this turn of the century period a large number of crooks have been trained at the firm now called FNZC or perhaps more correctly people have been brainwashed into being crooks there. Perhaps rather like Osama Bin Laden’s camp where the people who converted and destroyed the airliners on 11 Sept 2001 were perverted. I will elaborate on these FNZC people in due course.
We advance four years to April 2004 when FNZC played a large part, along with the Government and Forsyth Barr in robbing amateur investor of their largely hard won funds by way of the Feltex IPO. FNZC owned the NZ carpet company Feltex and used it to buy the Australian carpet manufacturing plant of Shaw Industries in year 2000. Shaw had no doubt decided that with falling tariffs it was cheaper to supply Australia from low wage countries. Feltex did no take over any of Shaw’s brands. The projection for year 2005 in the IPO prospectus included a 1% increase in market share when Feltex had been consistently losing 2% of market share each year and !% p,a market growth based on a flawed presentation of what was happening. This was all ignored by the all female quorum of the Securities Commission (including two Aussies) which “considered” the matter after Feltex’s inevitable fast collapse. It is clear that this IPO was to pay for a license to cheat gold and silver medals at the Athens Olympics from corrupt Olympic officials. Eion Edgar was chair of Forsyth Barr, chair of the ACC Investment committee which threw $9m into the IPO pretending it was an investment, and chair of the NZ Olympic Committee. All at the time of the IPO. This presumably is the type of operation in mind for Michael Walmsley and Principal Equity. I expect the “schemes”, in fact serious crimes, have been checked out with the Government and are ready to go. RNZ has a duty to warn the public of such pending crime, not just go along with FNZC’s publicity release be it in a slightly skeptical manner.
The crooked judiciary sworn in 2004 before the Feltex IPO has seen a fake civil action going through the courts, now coming to the supreme court next month. This has been jacked up by ex Fay Richwhite executive Tony Gavigan and his crooked Australasian mates. The scam has caused many deaths. Paul Phillip Wilson was 14 years old when his mother, a Feltex marketing manager was forced to go along with crooked IPO figures. This has caused neglect of Paul putting him into a life of crime until he got access to a motor vehicle at Easter 2011 and finished himself off by crashing into a bank in Fraser Avenue Wellington. The coroner Ian Smith died in 2015 a day or so after I reminded him that a report into Paul’s death was long overdue. I had previously told him of the Feltex connection but (no doubt on instructions) he refused to correspond with me at all. Another coroner eventually did the report but refused to consider matters happening more than 12 hours before the death.
Top graduate of the FNZC crime school at the turn of the century is probably Chris Liddell who has briefly been CFO of some of the USA’s biggest companies and is now an adviser to President Trump. He has also been chair of NZ company Xero who the Government has allowed to be financed by way of a share price bubble, ie amateur investors have been deceived by movements in the price designed for that very purpose. This was how Joseph Kennedy made his fortune in the 1920s. There are supposed to be measures in place to stop this sort of thing but not when people like Liddell and billionaire NZ citizen Peter Thiel (the last letter distinguishes his name from his occupation) tell the Government to suspend the measure. Xero has been obtaining finance from the bubble through share issues at a premium. It has never made a profit but hums along.
Another graduate of the FNZC crime class of around year 2000 was Craig Foss. He was Commerce Minister for about 5 years to keep the lid on things. Lianne Dalziel resigned all her portfolios including Commerce Minister about one month before the Feltex IPO. Simon Power was Commerce Minister and did a similar thing and left politics about 10 years later. Foss was a city boy but the National Party jacked him up with a blue ribbon rural electorate. He now has been pushed out of office.
Further FNZC graduates of the turn of the century are the Whineray brothers, Matt and Fraser. Their Uncle Wilson gave them an impeccable name for inductees. Their Uncle Kenneth Keith went onto the Supreme Court in 2004, to help keep it “nice and crooked”. The brothers spent a long time with FNZC in different roles. They moved elsewhere and the in 2008, the last year of the Clark Government Frazer joined Mighty River Power to join up with Feltex director as per the prospectus Joan Withers. Withers fled Feltex after its first profit downgrade and become CEO of Fairfax NZ (appointed by another former All Black captain David Kirk) to drastically purge the Fairfax staff. There would be no reports of state sanctioned corruption coming from that quarter. Also in 2008 Matt was appointed a “guardian” of the New Zealand Superannuation Fund. Then in May 2014 Frazer was appointed CEO of Mighty River Power (after a world wide search according to Withers). The state dominated Company sponsors the incredibly “successful” NZ rowing squad. About 6 weeks later Matt is appointed the inaugural Chief Investment Officer of the NZ Super Fund. True to his training he immediately gave a cheque of $US150m to US finance house Goldman Sachs for the stated purpose of Sachs joining it with 11 other sums of US money with a combined value totaling $US613m to make a deposit (in the name Oak Finance) in one only private Portuguese bank known as BES. Much like the National Mail investment Matt had no doubt trained upon with FNZC, BES was announced as having gone bust about 3 weeks later. No doubt the NZ Super Fund and Goldman Sachs had just pretended to make a deposit there and the bulk of the funds have gone to crooked executives of Transparency International to pay for high perceived anti-corruption rankings for certain countries including NZ. Oak say the Portuguese Government promised to bail them out should there be such a collapse and it is taking legal action in a British court. The claim form filed can be found here:
Large contribution from Denmark and UK as well as NZ can be detected. These are countries that do very well on the index. NZ got kicked off a European Union white list of reliable countries a few years back so the only plausible explanation for it being top of the TI index is it paid to be. The above clam form shows where the money comes from. Note that all but the NZ and Danish contributions come from known tax haven mini states.
It is high time RNZ told the truth about FNZC so the country can regain a good international reputation and hence gain better prosperity. This program segment is highly inaccurate through failure to describe the corrupt nature of FNZC.
This is the latest we have uncovered but for more see http://www.justaccounting.co.nz/sp.htm