To view our conclusive evidence that the Feltex IPO was instigated by the major political parties to rob investors to finance cheating of Olympic medals click hereWe have revised our presentation of this evidence mid October 2014
March 2015 Edition revised mid March
Two very significant events related to or similar to the 2004 Feltex IPO appear to have occurred last month. We are not sure which one came first. We think one or both these events relate to the Government obtaining money for cheating including acquiring gold and silver medals at the Rio Olympic Games.
Irregular or improper trading by the large Kiwi-saver provider Milford Asset Management was identified by NZX which runs the New Zealand stock exchange or market. The matter has been reported to the Financial Markets Authority. Milford acknowledge this but say only one of its individual traders is under investigation. This seems very very fishy.
Equally or more fishy is an acknowledgement by the New Zealand Superannuation Fund that a $200m investment has gone bad and legal action is apparently the only possible solution although the Fund claims that its chances of recovery by this method are good. But who in their right mind would think that they could make a safe investment in a Portuguese bank. We have nothing against Portugal but it seems to be struggling in the Eurozone and is possibly the number two problem country after Greece. And who in their right mind would think that there would be an insurance company prepared to, or more importantly able to, make good a default on such an investment at affordable rates. And who in their right mind would engage a firm such as Goldman Sachs to arrange a genuine investment for them. Well we say this never was a genuine investment.
The fund is grizzling about the Portugese Government taking some action over the bank failure which it says could not be anticipated. Well that is the sort or thing that happens when times get tough. In the 1930s depression in NZ the Labour Government cancelled all second mortgages. This was very unfair in many cases, but it was very easy to understand what the measure was and hence people tended to immediately know where they stood and decisions for getting on with life could be made.
This was no place for the Superannuation Fund, whose mandate was to grow the fund, to be. It was obviously there for improper reasons.
Like the ACC fund in the past this Superannuation fund seems to be a case of a investment fund purportedly doing very well, and politicians thinking it would only be appropriate to “secretly” tap into it to do things that can’t really be done officially. We are not sure whether the Fund claims it made a direct loan to the bank or bought some existing transferable debt. If it is the latter it would seem to be the same old story. The existing debt holder knows that the bank (or whatever company) is bust and his/her/its funds are gone even although there has not yet been any announcement of the failure. So this debt holder gets the “opportunity” to “sell” his investment at face value to some other cheat who also knows the “bank” is probably bust. Probably this purchaser is a public organization and the Government involves wants to get money out of it in secret for “other” purposes. The condition of this purchase of dud loan capital that a large portion of the funds “received” are paid to a further party nominated by the incoming (bad) debt holder. Most likely the “selling” party does not get its hands on the money being on-forwarded. That will be the job of the finance house or a faction of it which arranges the “transaction”. If the incoming debt holder takes legal action that is likely to take the pressure off the fielding of accusations of fell play.
We had cause to look at the background of the NZ Superannuation Fund staff as given on its website and reported our findings in our February 2006 edition . This got a fast reaction in that the Fund promptly removed much of this background information from its site. We report this in our April 2006 edition. The inaugural CEO of the Fund, Paul Costello resigned in August 2006. We think we might have had something to do with it. Perhaps his policies were too transparent for the “guardians”. And perhaps he would not allow any “leaks”. He is doing OK in the superannuation industry in Australia we believe. A peculiarity of Mr Costello was although the general impression was and is if you have not made it in the field of commerce by age 30 you never will, Mr Costello had not even tried to make it in commerce at that age. He seemed content teaching English and the like at Hutt Valley secondary schools. He finished up at Taita College we think, which was where ex commerce minister Craig Foss received his secondary education. Taita is a very low decile area in education terms so its all a little strange.
Mr Costello was replaced by Adrian Orr as the Fund CEO. This Portugese investment was ridiculous and we think he should not survive it.
There is a small link at least between Milford Asset Management and the NZ Superannuation Fund. Brian Gaynor was an inaugural director or guardian of the NZ Super Fund in 2003 when he resigned from it to become co-founder and Executive Director of Milford and he remains in that position. He also remains an active financial commentator but does not appear to have commented upon this anomaly at Milford which has put it under investigation. We think perhaps Milford has had something of a “free hand” with respect to investing rules in return for Mr Gaynor being appropriately selective in his reporting. The Government at some stage has made it clear to him that it wants control over financial reporting and Mr Gaynor has decided that he can’t fight the system.
We believe Mr Gaynor would receive a daily list of stocks traded by Milford including price, quantity, whether bought or sold, and employee responsible. We think he would take a keen interest in such a list and hence would know what was going on.
We do not believe that this investigation involves just one of the company’s traders or that the status of the company is unaffected. With a fast growing asset base the temptation is to keep buying shares in companies that one already has a sizable holding of. That keeps up the price of these shares which can give one superior “asset growth” or one might say “performance” which in turn keeps the funds rolling in and hence the fast growth. Round and round it goes.
It would seem that NZs place on a corruption index would be about 35, not the number 2 as presently on the corruption perception index of Transparency International. Either the perception is very poor or the organization is corrupted.
It is of course our assertion that Brian Gaynor’s son David died as a result of the country’s extensive financial corruption. Brian wrote an NZ Herald article highly critical of former Fonterra CEO and rural entrepreneur Craig Norgate in May 2010. The article was largely ignored by the business community. It would be relevant however to the pupils of Kings College where David and a daughter of Mr Norgate were both in year 12. This is a private school which no doubt has a business orientation. We think the consensus at the school would be that Mr Gaynor’s journalistic attack was unwarranted. (Our opinion is that authorities should have taken action against those Mr Gaynor criticised). We think David would cop the flak. In July 2011 David took alcohol and illicit drugs as he had pre-planned, prior to attending a function hosted by Mr Norgate. David died from self harm about 4 hour later. The Chief Coroner’s report did not mention the assumed conflict between Brian Gaynor and Craig Norgate. This Chief Coroner has just recently retired from being Chief Coroner and a coroner.
We also of course go on about the death as a 21 year old of Paul Phillip Wilson in a motor vehicle incident at Johnsonville, Wellington, at Easter 2011. We understand that Paul had recently left his home in Auckland for the first time and his behaviour in this his final incident would indicate that he was not coping as an independent adult. Paul’s mother was and perhaps still is marketing manager for Feltex Carpets. We believe that she would have had to be coerced into going along with unrealistic sales forecasts going into the May 2004 Feltex prospectus and this would have troubled her greatly. Paul would have been 14 years old at that time and has no doubt copped the adverse spin-off with permanent serious repercussions.
There has been no released coroner’s report into Paul’s death. We checked up on the state of play (or at least tried to) by way of two, we think polite, emails to the Wellington Coroners office on the 14th and 15th of October 2014. We understand that the Wellington coroner Ian Smith died on or about the 16th of October and had been actively performing his duties virtually up until the time of his death. We understand the Mr Smith was aged in his late 60s and expect there was a medical cause to his death. But we nevertheless suspect that he had received improper instructions relating to how the Paul Wilson case should be handled which was troubling him and has brought his death forward. More and more officials are being directly appointed by the Government which we say is resulting in more and more corruption.