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
July 2016 Edition
To peruse our extensive evidence that the Feltex IPO was a Government sanctioned robbery of hard working but modestly educated New Zealanders to raise funds to enable the country’s athletes to cheat Olympic gold medals click here.
Well it suspense time in crooked NZ. We would like to stop lots of things happening. There most likely would be away but we do not know of it. The Court of Appeal are waiting to find the right time to present a corrupt finding against the 8000 Feltex Carpets subscribers of year 2004, as instructed by our corrupt Government or a dominant faction of this Government.
The most high profile and most influential member of the Government faction who agreed to the Feltex robbery so as to get gold and silver medals at the Athens Olympics was Helen Clark, Prime Minister from 1999 to 2008. She is campaigning to be United Nations Secretary General and an outcome of that is awaited. Current Prime Minister John Key criticizes the decision making of the Clark Government at almost every second day’s sitting of the NZ parliament yet nevertheless fully supports Clark’s Secretary General bid. Newscasters such as Mike Hosking call on NZers to put some perceived glory or prestige for the country which would allegedly come with Clark’s election, ahead of consideration of the best person for solving world problems to the extent that the Secretary General can potentially achieve such. And world problem abound.
And of course the 2016 Olympic Games are pending and how many medals NZ has paid to cheat to the embarrassment of many remains to be seen. In 2012 NZ would seem to have been attempting to win more than the quota it paid for when a day or two before the event officials claimed that Valarie Adams had not been entered. That got “sorted out” without it ever being reported how this “not entered” claim came about. The Adam’s gold was then blocked by a rival winning on the day. The rival was eventually found to be doped with the gold going to Adams but we think it question of money paid as to who it is so found.
Games in which NZ is very competitive have been brought into the Olympic arena and we are a little concerned as to how this has come about. Certainly Government support for high performance sport by any country is not appropriate and NZ would seem to be one of the worst proportionate to population in this regard.
It is quite evident that the 2016 NZ Olympic secret effort is being funded from a $US200m leak from the funds of the NZ Superannuation Fund in mid 2014. Certainly such a fund might accidentally lose funds from time to time but this “deposit” in a defunct Portuguese bank is obviously not a case in point. The matter is said to be before an English court so can’t be discussed but what an English court has got to do with it is hard to fathom. I will have even less to do with it now as a result of Brexit.
And another thing pending is the appointment of Dame Patsy Reddy as Governor General. The dame has been too closely associated with crooked financial reporting to be in anyway suitable for the GG post. She joined Brierley Investments in a top role around 1987 when Sir Ron Brierley was chair of both this the investment company he founded, and the Bank of New Zealand. An association had between these two companies and a third one Capital Markets, controlled by Fay and Richwhite who were to become the subject of many NZ formal financial inquiries. This association comprised a Luxemburg registered company called European Pacific which the trio had formed with them each holding 28% of EP’s shares. But times were becoming tough for Brierley and the Bank as a result of the October 1987 stock market crash. A scheme was dreamed up for the BNZ to buy large long term zero coupon bonds and for the revenue from such bonds to be misallocated so as to mask any losses the Bank might make in the short term. Under one such scheme loans of the bank were deemed to insured from loss. The “insurance policy” was a long complicated document involving a Dutch Insurance company and European Pacific but not any insurance as such. Merely earnings of the bonds were deemed to be able to be brought forward to cover a loans loss. This potential to defraud was in place as at 31 March 1988. I was not “used” to “make good” any bad loans at that year end as there appears to have been no pressure to declare any extra loans as being bad. We believe Patsy Reddy would be part of the team which fixed up or went along with this deception facility. The Government also as the Bank’s major shareholder would also be keen to cover up losses and so Reddy would have been introduced to the business of accounts manipulation under the protection of Government if this had not already happened. In the event the chickens came home to roost and the BNZ was obliged to declare a large loss midway through its 1989 year. The loss was too big for its “insurance” and other mechanisms of deceit to handle and there was no point in trying to make use of them. The Government sold a block of shares in BNZ to Capital Markets to fund the Bank’s recapitalization. Sir Ron lost his position in the Bank and Brierleys sold its EP shares so probably Reddy’s association with the Bank’s “insurance” etc became more remote although nevertheless she would be able to guess what was going on. At its 1990 year end the Bank utilized its “insurance” scheme and other misallocation of bonds income to make an $100m “profit”.
Reddy remained with Brierley for about 10 rather turbulent years. About the turn of the century Reddy was appointed to the board of telecom. Although the Government may have held no shares in Telecom at that stage it had extensive influence over it because Telecom held the “local loop”, a term used to describe the country’s network of telephone wires which Telecom was deemed to own. Although Telecom probably gained this ownership legitimately such a monopoly was virtually unknown in industrialized countries and it was in this communications area that huge technological advances were being made. Government influence no doubt had included appointing a women as the Telecoms CEO. Apparently there are no such appointments amongst the country’s 50 largest companied. Anyway as this article shows in its 2001 accounts Telecom has willfully cooked the books in lending it associate company Southern Cross Cables money so SSC could pay Telecom about $200m in dividends which telecom declared as part of its income for the year. Southern Cross was just starting off and at that stage had earned little more than $1m. This corrupt activity should have debarred all the directors at the time from any future public office let alone that of Governor General. We seek to block Reddy’s taking of this post.