Allan Hubbard (businessman)

Allan James Hubbard

Allan Hubbard in 2010
Born 23 March 1928(1928-03-23)
Dunedin, New Zealand
Died 2 September 2011(2011-09-02) (aged 83)
Occupation Businessman
Known for Setting up a major finance business in the South Island of New Zealand and eventual failure of those businesses
Partner Margaret (Jean) Hubbard

Allan James Hubbard, QSO[1] (23 March 1928 – 2 September 2011) was a businessman who lived in Timaru in the South Island of New Zealand and was the founder of South Canterbury Finance, New Zealand's largest locally owned finance company.[2] In 2006, the New Zealand Listener described Hubbard as the most powerful businessman in the South Island.[3]

Hubbard was listed on the New Zealand Listener Power List from 2005 through to 2007 and then ranked on the Primary Sector list at number four in 2009.[4]

Hubbard had significant interests in dairying, irrigation systems, finance and helicopters. He was one of three directors of Dairy Holdings Limited, which in 2007 owned 57 dairy units, and 10 grazing blocks in the South Island. In the 2006-07 season Dairy Holdings Limited milked 44,000 cows on 16,120 hectares and produced 14.3 million kg of milksolids.[5]

Hubbard died as the result of a car crash on 2 September 2011. [6]

Contents

South Canterbury Finance

In 1926, South Canterbury Finance started as a finance company in Timaru. Allan Hubbard was considered the driving force behind the company's growth as it ultimately became the largest financial institution in the South Island.[7]

On 31 August 2010, South Canterbury Finance asked its trustee to place it in receivership after negotiations over a recapitalisation deal failed.[8] The Government immediately paid out investors $NZ1.6 billion under the Government's Retail Deposit Guarantee Scheme. Alan Hubbard was reported blaming the Government and the other South Canterbury Finance directors for the receivership: as the directors had sidelined him and the Government had placed him in statutory management.[2][7]

Statutory management

On 20 June 2010, the New Zealand Government placed Allan Hubbard, his wife Jean Hubbard and his business Aorangi Securities and seven charitable trusts into statutory management, with Trevor Thornton and Richard Simpson of Grant Thornton appointed as statutory managers.[9] This decision was based on recommendations from the Securities Commission of New Zealand after a complaint from an investor.[10] Allan Hubbard established Aorangi Securities Limited in 1974. The directors are Allan and Margaret Hubbard and the share capital is owned by another Hubbard-owned company Forresters Nominee Company Limited. Aorangi had operated as a finance company, having raised $98 million from 407 investors living in Otago and Canterbury and making loans of approximately $134 million to borrowers. The review of the Securities Commission concluded that many of the loans were inadequately documented, appeared to be unsecured and contrary to instructions from investors.[11] The Serious Fraud Office (New Zealand) initiated an investigation for fraud.[12]

The news was met with disbelief in his home town of Timaru and elsewhere in the South Island, where Hubbard is seen as a pillar of the community. There was widespread support for Allan Hubbard[13][14] and a rally was held for him on 26 June 2010 in Timaru attended by thousands of people who protested against the investigation.[15]

In September 2010, two further companies, Hubbard Churcher Trust Management Ltd and Forresters Nominee Company Ltd were placed under statutory management.[16] On 11 May 2011, Allan and Jean Hubbard filed judicial review proceedings in the Timaru High Court to challenge the decision to place them into statutory management.[17]

Serious Fraud Office investigation

On 20 June 2011, the Serious Fraud Office announced that it had laid fifty charges of alleged fraud under sections 220, 242 and 260 of the Crimes Act against Alan Hubbard in the Timaru District Court.[18]

On 9 September 2011, the Timaru District Court made an order permanently staying the prosecutions in light of Mr Hubbard's death.[19]

References

  1. ^ Diane Morcom (6 June 2005). "Queen's Birthday Honours List 2005". Department of Prime Minister and Cabinet. http://www.dpmc.govt.nz/honours/lists/list.asp?id=30. Retrieved 30 October 2010. 
  2. ^ a b NZ Herald/NZPA (31 August 2010). "Hubbard speaks out - Govt to blame". The New Zealand Herald. http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10670115. Retrieved 21 June 2011. 
  3. ^ Denis Welch (November 2006). "People who matter". New Zealand Listener. http://www.listener.co.nz/issue/3472/features/7559/people_who_matter,3.html. Retrieved 26 June 2010. 
  4. ^ "2009 Power & Influence List: Primary Sector". The Listener. 5 December 2009. http://www.listener.co.nz/commentary/2009-power-influence-list-primary-sector/. Retrieved 2 July 2011. 
  5. ^ Chalmers, Heather (7 October 2007). "Corporate farmers’ formidable dairy holding". Rural News. http://www.ruralnews.co.nz/Default.asp?task=article&subtask=show&item=13423&pageno=1. Retrieved 26 June 2010. 
  6. ^ Leask, Anna (3 September 2011). "Hubbard dies after crash". New Zealand Herald. http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10749145. Retrieved 3 September 2011. 
  7. ^ a b Vaughan, Gareth (31 August 2010). "SCF put into receivership, triggering govt payout; Bond investors, Torchlight win; Hubbard furious". Interest.co.nz. http://www.interest.co.nz/news/50529/scf-put-receivership-triggering-govt-payout-bond-investors-torchlight-win-hubbard-furious. Retrieved 2 July 2011. 
  8. ^ Parker, Tamsyn (1 September 2010). "Three bidders but deal proved too hard". The New Zealand Herald. http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10670228. Retrieved 21 June 2011. 
  9. ^ "Beehive - Aorangi Securities, charitable trusts, and Hubbards placed into statutory management" (Press release). New Zealand Government. 20 June 2010. http://beehive.govt.nz/release/aorangi+securities+charitable+trusts+and+hubbards+placed+statutory+management. Retrieved 23 October 2010. 
  10. ^ "SFO to investigate Hubbards". The New Zealand Herald. 20 June 2010. http://www.nzherald.co.nz/serious-fraud-office/news/article.cfm?o_id=371&objectid=10653246. Retrieved 21 October 2010. 
  11. ^ Minister of Commerce (20 June 2010). "Aorangi Securities Limited & Hubbards – statutory management fact sheet". New Zealand Government. http://www.beehive.govt.nz/sites/all/files/factsheet_20_June_2010.pdf. Retrieved 9 July 2010. 
  12. ^ NZPA (31 July 2010). "Gentleman millionaire investigated". TVNZ News. http://tvnz.co.nz/business-news/gentleman-millionaire-investigated-3602355. Retrieved 31 July 2010. 
  13. ^ NZPA (31 July 2010). "SFO to continue Hubbard investigation". TVNZ News. http://tvnz.co.nz/business-news/sfo-continue-hubbard-investigation-3679823. 
  14. ^ Bernard Hickey (23 June 2010). "Top 10 at 10: The real Allan Hubbard". Interest.co.nz. http://www.interest.co.nz/opinion/top-10-10-real-allan-hubbard-octogenarian-pictured-dialysis-runaway-general-dilbert. 
  15. ^ Amiri Halberg (26 June 2010). "People Back Allen Hubbard". Topnews.co.nz. http://topnews.net.nz/content/25579-people-back-allen-hubbard. Retrieved 31 July 2010. 
  16. ^ Commerce Minister Simon Power (20 September 2010). "Two further Hubbard companies in statutory management". New Zealand Government. http://www.beehive.govt.nz/release/two-further-hubbard-companies-statutory-management. Retrieved 21 May 2011. 
  17. ^ NZPA (11 May 2011). "Hubbards fight court decision". The Otago Daily Times. http://www.odt.co.nz/news/business/160042/hubbards-fight-court-decision. Retrieved 21 May 2011. 
  18. ^ Steeman, Marta (20 June 2011). "SFO charges businessman Allan Hubbard". The Southland Times. http://www.stuff.co.nz/southland-times/business/5168211/SFO-charges-businessman-Allan-Hubbard. Retrieved 20 June 2011. 
  19. ^ "SFO v Allan James Hubbard" (Press release). Ministry of Justice. 9 September 2011. http://www.scoop.co.nz/stories/PO1109/S00132/sfo-v-allan-james-hubbard.htm. Retrieved 11 September 2011. 

External links