Cheques will be honoured by investment society

Press, 2 July 1979, Page 1

Cheques will be honoured by investment society

PA Wellington The Public Service Investment Society will honour cheques it issued to members and creditors before its funds were frozen last Thursday, says the Government-appointed statutory manager, Mr R. W. Stannard. Last evening, Mr Stannard said that some of the cheques might have “bounced” on presentation tc banks after the Government’s intervention, and others might not have been presented yet. “But if presented or represented to a bank today they will- be honoured,” he said. “This is unusual in the circumstances, but I believe it to be fully justified ” Mr Stannard said that new cheques issued by the P. 5.1.5., dealing with funds deposited by members since Thursday — which were now fully protected by the Government act — would also be honoured: “Members have absolutely no need to seek temporary advances from savings banks or other lending institutions,” he said.

"Provision for meeting their urgent needs is well advanced and details will be announced soon. This will include assistance for Railways members facing hardship because of suspension notices.” Mr Stannard said that all trading in P.S.LS. stores “for the next day or two” would still be for cash only but sales on hire-purchase would also be made. “I hope to be able to announce soon the reintroduction of credit facilities for members,” he said. “The exact date will depend upon our computer arrangements. Computer staff and many others have worked right through the week-end to achieve this.”

Mr Stannard said that all salary, wage, and superannuation payments and deductions which had been transferred to the society from and including June 25 were fully protected, as were all moneys paid in since the start of the special legislation. “This means that as soon as our computer is ready, these funds will be

available for members’ use,” he said. “Unfortunately, members’ funds and balances held before the special legislation are frozen, except for the special cases just mentioned. “I must emphasise that the early removal of the ‘freeze’ on savings depends entirely on the continued support of members for all the society’s facilities.” Mr Stannard repeated earlier statements on the calibre and ability of P.S.LS. executives and staff, and their willingness to support him in the restructuring of the society. The Mayor of Lower Hutt (Mr J, KennedyGood) had previously said that P.S.LS. board members should end their

“deafening silence” about the society’s debacle if members were to have confidence in its future. “Was it caused by mismanagement from the top, or a lack of financial expertise? If so, how are we going to be assured that if and when, control is passed back to the board it won’t happen again?” he asked.

“The P.S.LS. must have known a crisis was coming for several months. One would have expected the board to have prepared a full description of what steps were taken, why it happened, and what steps would have to be taken in future to avoid its happening again.” Mr Kennedy-Good said that while he was not an investor himself, two sons with young families were.