Extension of Securitibank investigations

Press, 17 December 1976, Page 1

Extension of Securitibank investigations

PA Auckland The provisional liquidators of Securitibank. Ltd, Merbank Corporation, Ltd, and Commercial Bills, Ltd, will now look into the affairs of three more Securitibank subsidiaries.

These companies are Secured Deposits, Ltd, Safe Custody Nominees, Ltd, and Mortgage Management, Ltd.

The extension of the work of the provisional liquidator, Messrs L. R. Willis and D. W. Mace, Auckland chartered accountants, was disclosed in a statement issued last evening by the directors of Securitibank.

The directors said they had obtained further orders from the Supreme Court for that purpose.

The statement said: “This action has been taken to protect the interests of depositors and investors in these companies.”

Messrs Willis and Mace began their work at Securitibank’s head office in Queen’s Arcade on December 10. It had been expected that they might by now have been able to issue a statement on the first three companies they were asked to investigate, but they have not done so. Excluded again from their investigations is Short Term Deposits, Ltd,

one of the five New Zealand official money market dealers authorised by the Reserve Bank. Short Term Deposits on Wednesday paid all its depositors in full, and is believed to be now preparing to pay depositors ail the interest that is due.

It is believed also that the depositors were all institutions, numbering between 30 and 40. They received cheques to a total of about $4.5M. Meanwhile, the directors of Samco-Sargent Consolidated. Ltd, announced yesterday that, at their request, Merbank had appointed a receiver of their company. The receiver is another Auckland chartered accountant, Mr F. N. Watson.

It was learnt that about 20 building staff employed by Samco-Sargent had been laid off and found other jobs. The latest project finished by Samco-Sargent was Swanson Towers, a complex of three office blocks with a frontage to Hobson Street, Auckland, and an outlook over the harbour. Built at a cost of about

S6M, with funding by Merbank, the complex was about five weeks ago open to inspection by potential tenants and space buyers. Other Samco-Sargent completed projects have included Hobson Towers, between St Patrick’s Cathedral and Swanson Towers; Legal House in Kitchener Street; and the Auckland Hospital nurses’ home at Grafton.

Samco-Sargent, with headquarters in Parnell, was registered as a public company in 1970 with an authorised capital of SIM, of which about $BOO,OOO was paid up as of last year. It was formed to acquire the assets of Sargent Construction. Ltd, founded iu 1962, Samco Property Development, Ltd, and other associated companies.

. Subsidiaries of SamcoSargent engaged in land development, building design and construction, property management, and motels operation. The chairman since its foundation has been Mr P. P. Sargent. Other directors are Messrs N. H. Cox and N. J. Mcllveen, who is also the company secretary.