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May 2011 Edition Update 8 May----

A summary of our evidence re the Feltex Carpets case is being maintained here.

We have nothing but condemnation for the few days of operation to date of the Financial Markets Authority. They have taken over the web site of the Securities Commission which they replace, which in itself is quite appropriate, but they have dropped all the Commission's reports or excluded them from public access except for a few very recent ones. We agree that it is appropriate for regulatory organisations to have a name and structural change from time to time to keep them relevant to the modern world. (We are not particularly convinced that one was required at this time but don't really want to argue that point). But they should not deny or suppress access to the history of matters which they are concerned with. The Securities Commission was not the work of any one group of people. The membership kept progressively changing over the 25 odd years it existed under that name. The FMA despite the name change and a few added functions is just the same thing. A couple of its members were on the Securities Commission so making an overlap which is the only thing that held the progressive (in time not quality) versions of the Securities Commission together.

We have managed to retrieve the all-time classic, the report into certain arrangements entered into by the Bank of New Zealand in 1988. This report is still highly relevant as at least of the most crooked players in the real life plot still hold important jobs. Peter Garty is we believe still the Chief Financial Officer at Wellington City Council. The council no doubt is keen to keep its football team, the only NZ one playing in the Australian (or Australasian) league, in operation despite serious financial woes of the teams owner. We suspect Mr Garty has been called in as the "professional best able to bend the rules" in such regard. The council was getting flack for giving this club owner more consideration than other rates defaulters. That issue went away but we suspect that other "help" has been given. Its the same old issue as the 2004 Olympics and the Feltex IPO. The country wants to top the tables in major sport but can't afford it so accounting principles go out the window.

Then we have Mr Garty's supervisor, the Senior Technical Partner, Elizabeth Hickey. She was all trained up zero coupon bonds and how they were no longer able to be used to arbitrarily transfer income between financial years but she did not properly handle two huge such parcels of bonds which the BNZ had bought. She is on the NZICA board and hanging out at Auckland University. We would be leaving her alone if she was coming out of gaol now having served her 20 years, but she has been cruising the world on high paid jobs.

If you would like a copy of this 397 page document please Contact Us. It is in picture form so we probably cannot afford to make it directly available. We will attempt to do an ocr operation on it. Relevant extracts of it have for many years been available from here (paragraphs 15.105 to 15.120). Also here (paragraphs 15.121 to 15.158). Also here (the people and the infamous unders and overs schedule of 1990 ) and still are.

Improvements to the fairness of financial markets cannot be achieved by covering things up. The FMA must say "Here is all the information that is publicly available. Use it to help us put as many crooks in gaol as possible or do it without our help. Timing does not matter. We want the place cleaned up." If we catch up with such people we will arrest them even although they might be on their death bed with only five minutes to live.

What they seem to be doing is saying "there has been a lot of confusion around these matters. But we have got everything right now so lets start off from here." And they keep saying this again and again and again.

We have been working to have the Commission's reports on Feltex back on line very soon and here and here they are. The first is the infamous one page report on the IPO from 2006 and the second is some more on the IPO (despite the first report saying that no further action would be taken), and other matters which lead the the MED V Feeney court case and the NZICA disciplinary which found auditor Gordon Fulton guilty of one breach of the Institutes rules.

We believe that we have uncovered previously unreported information concerning the 2004 Feltex Carpets IPO. (IPO stands for Initial Public Offer which is supposed to be a somewhat controlled process by which a company gets a broad public shareholding which in turn allows the company to be listed and traded on the somewhat controlled Stock Exchange of the country, all this presumably taking place with a considerable degree of fairness so that all might benefit,) Not that there was much cover to get under. The quorum of the Securities Commission which was supposed to have investigated this IPO was all women. These woman were: the chairman Jane Diplock AO, and Commission members Keitha Dunstan, Joanna Perry and Annabel Cotton. We don't say that woman are more apt to attempt a fake than men. But we do say that in the current environment only women might believe they could get away with such a fake investigation and hence only women would attempt to do so. And they certainly have got away with it so far. But their time is close to being up if we have any say in the matter.

There has been a very strong "politically correct" convention not to criticise anything done by women and basically that is what has torn the NZ economy to shreds.

NZ "led the world" in giving women the vote in 1893. There seemed to be an understanding, referred to by R L Stevenson, that they would not exploit this situation by standing for any office. Women no doubt were a considerable minority in those days. But with the centenary of that event looming women were in the majority and all such conventions went out of the window. Arguably there should has been a move for men to do a wider range of as the value of physical strength in the work force diminished. But not in your life. Timid men saw the brutal consequence dished out to any man who expressed old fashioned views of a women's place and vowed never to criticise women again. Hence women came into a situation where they could do virtually anything provided they did not offend each other to any extent. And virtually all men became timid.

The obvious explanation is that having gained office as Prime Minister in late 1999 Helen Clark has set about putting in place a strategy to enable her to have a second and third term at the helm. She has turned to a group of radical feminists as at least part of her plan to enable her to do this. Her research as probably indicated that winning an "creditable" cluster of Olympic medals makes the country feel good about itself and most likely to return a Government at the polls (to use the jargon).

The scenario has a slightly rough fit. Diplock was appointed in Sept 2001. Cotton and Perry were also there by June 2002 at least along with Elizabeth Hickey, this most infamous accountant who made "mistakes" on behalf of the Government to allow the largely Government owned Bank of New Zealand to report an illusionary $100m profit in 1991. "Dr" Mary Ann Thompson also had the ear of Prime Minister Clark one must remember. That ear has been around some grubby circles its a wonder she has been able to get it back on. Dunstan, an Aussie like Diplock, came aboard in 2004. She came here to be the first head of a new school at Victoria University (of Wellington, NZ)where Kevin Simpkins, the retained expert reporting to that quorum, hangs out, and before him Don Trow, the "expert" who supported the BNZ's fake insurance policy used to lift its reported profit. The latest name in female appointees is Sharon Armstrong. She came into the public service about 20 years ago. Most certain a recruit was Joan Withers. She had been approached to join the Feltex board to help haul in the Mum and Dad investors.

The Institute of Chartered Accountants of NZ as become more of a secret society recently. No longer to they publish a big list of Boards and Committees and detail who is serving on each.. We are very concerned about the composition of its executive board which is published. The board has got seven members as well as its president and vice president. Five of these seven are members of the Institute. And three of those five have a disgusting track record. Of these three the afore mentioned Elizabet Hickey was one of two Ernst and Young audit partners who wilfully allowed the Bank of New Zealand to report a $100m profit in 1990 when the probability is that there was no profit at all. NZICA says that she is a member of the Securities Commission. Well she hasn't been that for some time . She left for some reason when fellow former Ernst and Young partner David Jackson left because the Commission commenced action against him over his actions as a director of Nuplex.

Then we have Craig Norgate who used aggressive accounting tactics to allow Kiwi Co-operative Dairies to go on a takeover spree which got him the top job at Fonterra for 3 years but he wasn't wanted after that. Then he used similar tactics with various other rural oriented companies which didn't work.

And thirdly one Neil Paviour-Smith who we have not mentioned before but is said by the NZICA to have been manageing director of Forsthe Barr since 2001. That puts him at the fore when this company co-lead the broking of the crooked Feltex IPO in May 2004. We might have previously reported that Eion Edgar held that role until 2004. This is incorrect. Edgar was chairman until he retired in 2004, about the time of the IPO. But he is a come-back kid as well as he is currently listed as the chairman. We wonder when he came back. Its hard to find that out. .

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