Bolger wants fraud probe

Press, 17 June 1988, Page 2

Bolger wants fraud probe

PA Wellington There should still be an inquiry into white collar crime in spite of a Securities Commission report that there was no evidence of massive fraud in New Zealand, said the Leader of the Opposition/ Mr Bolger, yesterday. The report was released yesterday by the Minister of Justice, Mr Palmer, who said there was no reason to put further resources into investigating the matter. Mr Palmer said the “gang of 20,” highlighted in recent news media reports on alleged fraud, was a media myth. But Mr Bolger told reporters at a press, confer-. ence he - • still believed there needed to be a fullscale inquiry into white collar crime. “I don’t believe a fiveweek 'once over the top’ inquiry by Securities Commission staff is of sufficient breadth.” In saying no further investigation was needed, Mr Palmer had used a very precise legal definition of fraud. Mr Bolger, however,' said that if you were losing’ money through unsavoury activi- ‘ ties you considered it fraud. The GST evasions for

which the Crown was now pursuing individuals and companies were cases of alleged fraud, said Mr Bolger. There was also a suggestion offences had occurred under the Companies Act. That might not be fraud but they were offences which required the attention of the courts. “I think what has been shown in the Securities Commission’s report is unacceptable activity and those activities should be further investigated,” he said.

Mr Palmer had said legislation regulating contributory mortgage schemes would soon be promulgated which suggested he acknowledged there was a gap in the legislation or regulations, Mr Bolger said.

"He has further work to do and he has yet to do it. This problem has not just arisen in the last five weeks, the problem has been there since 1986 ...

I would just like to know when he is going to move.”

The inquiry was needed to expose what element of criminal activity did exist and to , ensure that innocent investors were being protected as far as possible, he said.