Securitibank probe widened by Govt

Press, 21 December 1976, Page 6

Securitibank probe widened by Govt

PA Wellington! The Registrar of Companies would hold a full investigation into the affairs of Securitibank and all its associated companies, the Minister of Justice (Mr Thomson) announced yesterday. The inquiry, under the provisions of the Companies Act, will be under Mr G. C. Edgar, of Auckland, a chartered accountant. An Auckland lawyer, Mr John! Henry, had also been ap-1 pointed to the inquiry. Mr Thompson said in a[ statement that the investigation ■would be a full and! comprehensive inquiry into [ the causes of the Securiti-f bank collapse. However, no appointment I of a manager and receiver! would be made vet. Such an ;

appointment could be made.: under the Companies Special[ Investigations Act. only if I the interests of the various parties concerned could not' be adequately protectedl under the Companies Act. . “In this case, the pro-i visions of the Companies Act are thought to be sufficient to cope with the situation.” The investigation would clearly take some time, he said, and it was not known when the report of the inspectors would be available. I Mr Thomson said he was ■surprised at a statement by ' the Opposition spokesman on I justice (Dr A. M. Finlay) last I week — that there were ' “growing uncertainties” I about the affair, and the I Government should take i steps to resolve these, j While the provisional liqui-i [ dators had been suggested [: ibv Securitibank, they had’

i been appointed by a Suprein [Court, judge and were rej iponsible to the Suprein I Court for their actions, sail Mr Thomson. I There should be full con ifidence in both the abilit, 'and the integrity of the pre visional liquidators, he said The problem of the role of the provisional liquidation of the Securitibank groujj and the receivers appoinret to Securitibank itself bi three of the trading banln came near to solution ovq the week-end. It will be necessary ft, tlie receivers to get the ap proval of the Supreme Couil before they can begin theii work because the provisional liquidators are regarded a; officers of the Court. ! The receivers will b< I seeking the Court approval lit was learnt last night.