Sunday, 29 August 2010

Allan Hubbard Guilty as Charged

In the ongoing saga of Allan Hubbard and his crumbling business empire there were further revelations yesterday when the second report from statutory managers Grant Thornton came out.

It appears that Mr Hubbard has been running his Hubbard Management Funds (HMF) business, Aorangi Securities and a number of other investment vehicles in a slack, fraudulent and underhanded manner. In those respects it makes him as bad as your Hotchins, Watsons, Bryers and their filthy thieving ilk.

On first look though, what appears different is that Hubbard looks to have been motivated by the "Robin Hood" factor. That is, he was using other peoples money to lend to those who "needed" it.

All very altruistic sounding at first glance but bound to end in tears when incoming funds and assets didn't match outgoings.

There have been claims made in the second report that Aorangi Securities has been borrowing money on call while lending the proceeds to second rate and overvalued farming assets, the bulk of which are connected to the Hubbards - nothing altruistic going on there.

Aorangi made interest free loans to a charitable trust that the Hubbards have a financial investment in and that trust was being charged 10% interest on those loans - very dodgy.

Investment values overstated by 25% in the Hubbard Management Funds business with $13 million of assets allocated to investors in the fund that apparently don't exist - looking very bad here.

An overstatement of cash at hand at HMF of more than $5.5 million.

Inter-party lending that advantages Mr Hubbard and his financial interests over his investors is a good indication that he was covering his own ass in the event of a meltdown.

Mr Hubbard's businesses all suffered from a lack of full detailed documentation.

It is clear now while Mr Hubbard did not set out to deliberately fleece investors as other finance company heads have over the last 3 years, Mr Hubbard is no saint.

I have until now largely reserved my judgement on Hubbard and his predicament but if you read the report you can come only to the conclusion that Hubbard has been a naughty boy and supporters need to take a good hard look at themselves if they wish to continue to back Mr Hubbard in the face of the reality of his offenses thus far revealed.

Yep, it isn't right that the other thieves out there have largely been untouched by authorities but the object of our interest here is Allan Hubbard and we now should wait for the additional detail that will come out from the Serious Fraud Office and the Statutory managers of Hubbard's business and personal financial dealings.


Related Share Investor Reading

Download Grant Thornton Report 1
Download Grant Thornton Report 2

Allan Hubbard: Full TV3 Interview - July 16 2010
Thornton Report: Allan Hubbard's Aorangi Securities
Whatever happened to? Muriel Dunn
Bothered by Simon Botherway
Allied Farmers: Prosecutions should be on the cards
Allied Farmers Fraud passes with little fanfare
Allied Farmers: What's it Worth?
Hanover, Allied Farmers deal more of the same
Jane Diplock Q & A Interview
Hanover's "White Knights" are really daylight robbers
Hanover collapse: It was just a matter of time
Money Managers Saga: 3 Story wrap
Money Managers gives First Step investors the middle finger
Greed is bad: Geneva Finance Folds
Financial 101: Learn before you leap
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Sunday, 15 August 2010

Michael Laws: Vile Hooker Controversy

I mostly like Michael Laws, talkback host on Radio Live and Wanganui Mayor and most of what he says I can agree with.


He is bizarre at times but hell who isn't and some of things he says can be outrageous to some but you get that when you speak your mind.

The controversy that kicked off this week when he came out and defended sexual texts that were made between him and former druggie and prostitute Jacqueline Sperling (she says that is in the past) and that have or are going to be made public by the media is a little confusing to this poor soul.

What the hell has he done wrong?

Between consenting adults surely?

This individual is clearly after her 15 seconds of fame and doesn't care who she hurts on the way down.

He is in the public eye but is so for his work as a mayor and talk-back host. His private life should be left private unless it has bearing on his public office, is illegal or newsworthy in a significant way.

For rags like stuff.co.nz and the Herald to plaster this stuff all over their front pages is salacious and tabloid and is merely trying to go where some trashy blogs (not mine of course) have gone -straight to the toilet to get readers.

These papers maybe struggling to survive and make money but surely there is a need for quality rather than the filthy shite being peddled by the likes of Ms Sperling and served up by the failing aforementioned media.


Friday, 13 August 2010

Undercover Boss NZ: Tony Ryall does his job

The fact that Health Minister Tony Ryall has been "secretly" visiting hospital emergency departments around the country shouldn't be seen as a negative thing as the nasty vile, left politicians and TV3 seem to think it is.

Former Labour Health Minister Annette King has accused him of sneaking into hospitals "to spy on staff".

This is the best way bosses can see how their operations are performing.

Multi national companies do this sort of thing all the time and are able to improve their businesses as a result.

In fact, for Ryall NOT to do this would be remiss in the extreme. I for one expect a hands on approach.



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Sandcastles in the Air

Christchurch local body politician Gail Sheriff insists a ratepayer-funded trip to see a sandcastle competition in the United States was worth every cent.

mmmmm.

Hasn't this individual heard of the recession? Even in the good times this just aint acceptable.

Typical that the Mayor Bob (give me another ratepayer funded latte) Parker gave this the go ahead.

Who do these self important bureaucrats think they are, important?

Ratepayers don't think so and there has been a backlash.

Now I'm for other sorts of activities on the beach, especially when it involves as little body covering as possible but spending $4000 of ratepayer money on a holiday in San Diego and using the excuse that you are investigating sandcastle building because you think it maybe good for your city is stretching the realms of credibility tighter than Pamela Anderson's red swimsuit.

Nice work if you can get it.



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Tuesday, 10 August 2010

Cartoon of the Year: Tom Scott


I'm back ( you cant get rid of me that easily) and I will let you know latter why Political Animal has been away for more than a year but check this out in the meantime. From Tom Scott and surely one of the best cartoons over recent years. It may take your breath away but not half as much as the subject did when he made his racists comments.

Again!

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