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December 2013 Edition

The momentous year of accounting crooks Warren Allen and Elizabeth Hickey comes to an end. We regret that we have been unable to unseat them in anyway. These people facilitated a fake $100m profit for the Bank of New Zealand in 1990. It is important that the public soon recognize this and put them in their place.

Ernst and Young obviously assist Governments to cheat the world over to maximize US influence. It is possible that they are somewhat forced upon countries. But we do not accept that with respect to the large number of Ernst and Young NZ partners who misbehave. This firm is a major blight on our society and must be contained. We should repeat the roll of dishonour for this firm.

We are somewhat interested in the long running case of Lynne Snowdon against Radio NZ. Ms Snowden is an NZer but was headhunted overseas to be head of news for Radio NZ around the year 2000 by then CEO Sharon Crosby. But apparently she wasn’t coping and she went on sick leave about 2002. They are arguing about all sorts of areas where Ms Snowden perhaps was not performing except editorial policy. We wonder if perhaps the real story is she could not be relied upon to misreport the Feltex IPO robbery and other corrupt happenings which were then about to take place. So she had to somehow be got rid of.

To move on, we have complained formally about an article on the Stuff website dated 28/11/2013 and entitled “FMA names new chief executive”. We say the article and many others like it is inaccurate.

We complained in particular about the final sentence which says Sean Hughes “was appointed the FMA’s foundation chief executive in 2011” as well as the impression given about the nature of the Financial Markets Authority.

The FMA is a recent name given to New Zealand’s securities commission. This commission or authority is a member of the International Federation of Securities Commissions which has over 100 members. Most of these members have the words “securities” and “commission” in their name.

New Zealand established a securities commission in the 1980s and has had one continuously ever since. Until 2011 it was called the NZ Securities Commission. Around 2011 the Government made cosmetic changes to it and gave it the new name of the Financial Markets Authority. We claim that a new name does not constitute a “founding”. Hence the FMA was not founded in 2011 as this article indicates.

The renaming of the securities commission has been an attempt to give to a new image so that the public might continue to trust it and be taken in by it. In the past the commission has corruptly given the Government a clean bill of health for its willful posting of a fake $100m profit for the Bank of New Zealand in 1990, and for robbing amateur investors of $250m in 2004 to finance Olympic Games cheating via the “Feltex IPO and other fraudulent prospectuses issued by friends of the Government around that time.

Mr Scanlon of Stuff is defending these actions of theirs but appears not to be challenging our account of corrupt functioning of the Securities Commission. But he is adopting a weird definition of “fact”. Just because the Government and legislation says that the FMA is a new body does not necessarily mean that that is the case in a general sense. It could be prudent to set up a new body in law every time the chairperson or chief executive of the securities commission changed. If that had been what happened would Mr Scanlan say that every new such person was a foundation one? One has to take the history of the organisation into account. The Securities Commission was always evolving with changing of functions and personnel. The FMA thing is really but a name change. It is important that the public can identify a wolf in sheep’s clothing.

Mr Scanlon notes that the FMA overseas the country’s major stock market operator NZX. But Mr Hunter of Fairfax Business has noted that the FMA has OKed a practice of market manipulation whereby a friend of successive Governments Eion Edgar sold a few of his ordinary shares in Blis Technologies to reduce the assessed price of such shares so that he might receive a far greater allocation of these shares in a forthcoming transition of preference shares to ordinary shares. Mr Hunter noted that the exact same manipulation was deemed to be illegal in Australia. He wrote that he was not impressed with this action of Mr Edgar’s and presumably the FMA approval. Mr Edgar of course was chairman of Forsyth Barr when that company sold worthless Feltex Carpets shares to the public in April 2004. (He retired from that post soon after that issue but about a year later when Feltex was failing he resumed the chair of FB and has held it ever since). The Securities Commission with an all female quorum including two Australians could find nothing wrong with the Feltex issue however. In April 2004 Mr Edgar was also chairperson of the Investments Committee of the Accident Compensation Corporation, virtually the only NZ institution to subscribe to the Feltex issue. It subscribed $9m, we suspect to help get the ball rolling. And in 2004 Mr Edgar was also chair of the NZ Olympic Committee which in August that year produced “wonderful” results by Hamish Carter, Sara Ulmer and others which made at least some of the country proud of its identity. Lance Armstrong had just come into prominence at that time and Tyler Hamilton of the US also won a cycling Olympic gold then, which he later handed back confessing to EPO use.

Mr Hunter had been waiting on the stock exchange to rule on Mr Edgar’s Blis transactions, and probably still is, but the FMA, probably a “superior” body, beat them to it and said it was OK. But Mr Hunter refuses to link Mr Edgar’s 2004 activities with his recent Blis ones.

With his pointing out its overseeing of NZX Mr Scanlon reinforces our claim that the FMA is just the old securities commission up to its old tricks.

We agree with Mr Scanlon that this impression of the FMA we complain of had already been reported countless times, but that is no excuse for one further instance of it. The impression given is that the FMA is a quite new body. The facts are that it is just the old corrupt securities commission trying to disguise itself with a new name. It is too easy to simply take the Government’s word on what things are. A news organisation must constantly review its attitude to people and organsations in the light of evidence which emerges with time.

Incidentally the new Chief Executive of our securities commission which is called the FMA is Rob Everett. Like his namesake Kenny he was born in the UK but his wife was brought up in NZ. Like prime minister John Key he was part of the Merrill Lynch intake of executives for 1995. Mr Key has a hazy recollection with him as appeared to be the case with his knowledge of Ian Fletcher when Mr Fletcher was appointed the country’s top spy about a year ago.

We wish to now mention the relatively new leader of the NZ Labour Party, David Cunliffe. We would like to see that party get into power but with the right personel. We were not impressed with his attitude to claimed US landings on the moon and return there from. Colin Craig the leader of the Conservative Party in NZ, a party yet to be represented in parliament, presumable adheres to certain religious doctrines which gives the party a political appeal of a few percent. Actually it seems Mr Craig was to the fore in the pro smacking campaign and this is probably how he got his following. It is doubtful if his followers are of right wing tendencies in general. Well anyway Mr Craig was interviewed by a radio station which was hoping no doubt to uncover something new of interest about him and it asked in passing whether he though the noon visits were genuine to which it got what one might think was a boring and predictable answer that he did not know. But Mr Cunliffe did not quite see it that way. Mr Craig is apparently in negotiations with the National party over the possibility of him being “given” an electorate seat at the next election in return for certain support in parliament. National would give him such a seat by asking its members and supporters in the particular electorate to vote for him with their electorate vote. The thing about such an arrangement is that the Electoral Commission, illegally we believe, does not treat a person such as Mr Craig who the National Party gets into parliament as being a National MP so the National Party gets the votes of such people in addition to votes it is entitled to by way of the party vote. It seems that it might be Christine Rankin, a former high profile right wing public servant who has joined Mr Craig’s Conservatives who will be “given” a seat by National supporters. Mr Craig will probably be number two on the list and so will come in on the skirt tails of Ms Rankin since this provision still exists though he might not have much to hang on to. The minister Paula Bennet says she wishes to win that particular (new seat) for National but she no doubt is only out to make everything look innocent. National supporters have got the idea about “strategic” voting which is actually crooked voting now so Ms Rankin should be able to fly in. Anyway Mr Cunliffe thought that Mr Craig’s stated attitude to the moon landings was “wacky” or “whacky” and he suggested that such a person was unfit to be influencing the Government.

While it is possible to clarify the law to make it clear that any electorate (or constituency) candidate which a party or party member endorses is considered to be a member of that party if elected for the purpose of determining how many list MPs a party is entitled to, it is reaching the stage where supporters of a party do not need to be told of a non-official party candidate which the party wishes to win. The party supporters will just talk amongst themselves and sus it out. It would seem to be impossible to legislate against it. How can it be officially known that a candidate is the one that a party favours? All electorate seats might be won by unofficial candidates of one party or another. It could spell the end of MMP. We wonder whether Germany, the major MMP nation, has faced this problem.

The National party have already put two people in to parliament by the above manner and the likelihood they will have three such MPs there after the next election. We say Mr Cunliffe needs to stop this practice by having at least three of his MPs who hold good majorities in electorates to resign from the party and stand as independents or as leaders of new parties which have been formed with the help of Labour Party members. For every vote in parliament that National gets by that method Labour would take one as well which would make it a worthless exercise.

We say “human landings on the moon” belief is a religion. Believing in them is wacky but according to Mr Cunliffe not believing in them is wacky. Believing in them is not the result of evidence it is the result of having the story forced down our throats. It tends to be the poor that suffer from such deceipt. For Mr Cunliffe, a left wing MP to suggest that it is wacky not to believe in it is to let his people down. The fact that Governments can get away with perpetuating tales like that has lead to more such government manufactured deceit such as the Feltex IPO in NZ. Always there is death and misery at the fringes.

Mr Cunliffe said he just about arranged for the Springbok tour protester John Minto to take his place in the party representing NZ at a funeral of Nelson Mandela. It is time he started doing things instead of just about doing them. A rather right wing delegation went but the right wing seemed not to be supporting Mr Mandela when he needed support. Don Mckinnon was deputy PM to Rob Muldoon but he never seemed to challenge Muldoon for the leadership. Jim Bolger seemed to be capitalizing on Mendala’s fame when he took a long visit there prior to the 1996 NZ election. On 14 August 1996 Mandela referred to Bolger as his Aussie mate. The press said he had got confused but we believe it was deliberate to dampen the relationship down.

It is good to see that Graham McCready intends privately prosecuting someone involved with the Pike River disaster, for manslaughter. The judiciary has gone along with his prosecution of John Banks so far. If the case is well presented and well reported the judge will often have no option but to go along with it even although the Government has promised that the defendant be not prosecuted and the judge is expected to oblige given the terms or his/her unofficial unwritten contract.

We wish to ask Mr McCready if he would please take a case of fraud and manslaughter against the prime instigators of the 2004 Feltex IPO. There are quite a number of people in this group including the major political party leaders, lead broker leaders, Securities Commission quorum members and perhaps Olympic athletes. It is rather hard to know where to stop. The manslaughter victims will include Paul Phillip Wilson and David Patrick Gaynor. Most people who subscribed to the IPO are victims of the fraud. The illegal actions are simple: A Implying that the trend of market size figures for the 10 years up to year 2003 indicated that the size for 2005 would be 2% higher than 2005 when in fact the indication was that it would be 3% lower. B adopting a 1% p.a. increase in sales due to increasing market share when in fact sales had been falling at the rate of 5% p.a. due to falling market share for at least the past two years. There was no acceptable reason to predict a turnaround in the trend. Tariffs had been falling and it was becoming cheaper to supply the market from overseas manufacture. The motive was very clear: to increase the number of gold and silver medals won at the Summer Olympics by cheating. This eventuated but the wins were unconvincing and the medals per capita so won was unrealistic.

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