Former N.Z. Party head under scrutiny

Press, 13 June 1986, Page 3

Former N.Z. Party head under scrutiny

The financial dealings and mortgage investments of Mr Malcolm James McDonald, a Christchurch lawyer and former president of the New Zealand party, are being examined by auditors of the Canterbury Law Society. Many of the transactions concern mortgage investments by clients of Dougall Stringer and Company, of which Mr McDonald was a partner until May 14. The investigation is into only the dealings of Mr McDonald. No other member of the firm is involved. The announcement of Mr McDonald’s retirement from Dougall Stringer appeared in “The

Press” of May 17. The president of the Canterbury District Law Society, Mr K. N. Hampton, said last evening that he .would make no comment on the matter. Mr McDonald will appear before the Law Society today but Mr Hampton said that he had no comment. The inquiry arises from a series of mortgage transactions involving Mr McDonald and a local property investor, Mr Richard van den Bos, who was advanced money from Dougall Stringer’s nominee company. The registration of some of those mortgages was de-

layed and there was confusion as to whether some clients had first or second mortgages. Mr McDonald, aged 37, was elected president of the New Zealand Party in March, 1984, and resigned in July, 1985, after the leader of the party, Mr Bob Jones, announced that the party was going into recess. Mr McDonald could not be reached for comment last evening. Mrs McDonald told “The Press” that he was “out of Christchurch for a while,” and would not comment on whether he would be back in time for today’s appearance before the Law Society.