Opposition ‘pack of rabid dogs’

Press, 21 July 1988, Page 1

Opposition ‘pack of rabid dogs’

Special correspondent

and NZPA

The Opposition had behaved “like a pack of rabid dogs” over the corporate fraud issue and appeared to have a lack of understanding of the aims, abilities and powers of the Justice Department, said the head of the department’s corporate fraud unit, Mr lan Ramsay, last evening.

Mr Ramsay was the target yesterday for a stinging attack in Parliament on the unit by the Leader of the Opposition, Mr Bolger. Mr Bolger said the unit was tipping off criminals so that they could avoid exposure and capture.

Mr Bolger said Mr Ramsay admitted he had close contact with known “crooks.”

The Minister of Justice, Mr Palmer, said Mr Bolger’s comments were “reprehensible Parliamentary activity of the very worst sort.” “He is engaged in impugning the integrity and actions of a very fine public servant who has acted honourably and properly throughout this matter and who has been trying to do one thing and one thing only — that is, to protect the interests of investors,” Mr Palmer said. Mr Bolger said a “close contact” of Mr Ramsay’s — John Victor Evans, an undischarged bankrupt — “has been.involved in more shady and crooked deals than any other New Zealander.” “Mr Ramsay’s contact, the conman, John Victor Evans, was arrested this morning and charged with conspiracy to defraud the 1.R.D.,” Mr Bolger said. “This is the contact of the man who was supposed to be eradicating fraud...” Mr Bolger appeared in Parliament later in the evening to say Mr Evans had not been arrested today. '.. .'J. . , :

“The facts are that John Victor Evans was to appear in court today on charges of conspiracy to defraud. He was arrested earlier,” he said.

“My understanding was that today’s proceedings were to settle matters concerned with the trial. I also understand, to further clarify matters, that four or five other persons face court proceedings to do with the same offence.” . .

Mr Ramsay said last evening that he had met Mr. Evans only twice in' the last 'two years and he denied ever Having business or other dealings; with him.

At various times the Justice Department had approached Mr Evans to provide information on Auckland traders and the deals they were doing because of the involvement he had with the Auckland business community. “How on earth am I supposed to be investigating these people if I am not allowed to speak to them?”. Mr Ramsay said. Mr Bolger also said that an Auckland lawyer, Mr Graeme Fenwick, who acted for Registered Securities, Ltd, and whom Mr Bolger said Mr Ramsay had tipped off about articles concerning R.S.L. which were to appear in a newspaper, was also “arrested this morning and also charged with conspiracy to defraud the Inland Revenue Department.” “In this House yesterday the Minister of Justice stoutly defended Mr Ramsay,” Mr Bolger said.

“What is the corporate fraud unit there for — to catch crooks or to tip them off?

“The answer in New Zealand today: the corporate fraud unit’s responsibility is to tip the criminals off so that they will avoid exposure and capture. “We have here an appalling state of affairs.

“Ramsay is either a fool or worse,” Mr Bolger said. Mr Ramsay had admitted to a newspaper that he was being watched by the police fraud squad, said Mr Bolger.

“We have the bizarre situation of one State crime prevention agency being watched by the other crime prevention agency of the State,” he said. “That fact alone would demand an inquiry in any competent jurisdiction in the Western world.”

Now on two months paternity leave, Mr Ramsay, said he intended staying in close touch with department corporate fraud investigations but would not be taking any further action to clear his name. ■ ■ "The accusations are so far wide of'the mark and some have already been discredited so any statement by me would be pointless.”

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He refused to say whether he thought the unit had sufficient staff and resources to tackle corporate crime but said the best means of protecting the public was to ensure greater co-opera-tion between the unit and police. “The present action is not likely to bring that about.”

Mr Palmer told Parliament Mr Bolger’s comments were “baseless” and “irresponsible.” Mr Bolger had showed he was unfit to hold public office. “What he has tried to do in this Parliament today is to try people in their absence, find them guilty on evidence which is not advanced, and convict them,” Mr Palmer said.

“The Leader of the Opposition ... believes in trial by innuendo.” Mr Palmer said Mr Bolger had already had to apologise publicly at least once for his comments on fraud.

"So he does not make them publicly any more, he makes them under the cloak of absolute privilege in the House where noone can get at him for them.”

Mr Palmer accused Mr Bolger of wanting “the maximum number of companies to go broke.”

“He wants small investors to go broke and then blame the Government because he sees in that, political advantage for himself — and that is why he is conducting this campaign.

“It is a disreputable campaign that will do nothing but damage to the commercial interests of this country and the investors who take part in it.”

Mr Palmer said the result of “this belittling and malign campaign is simply going to prejudice investors in companies.” “The police are not investigating Mr Ramsay. The police have no reason to doubt the integrity or

ability of Mr Ramsay and indeed Mr Ramsay cooperates very frequently with the police, because they are engaged in similar activities,” Mr Palmer said.

It was “no use trying to make anything of Mr Ramsay’s tipping off of R.S.L. that articles were being published about them.”

“What he told them was to batten down the hatches in case small investors wanted to get their money out immediately; and any company needs to be prepared for that,” he said. “It was nothing to, do with Mr Ramsay that they brought an action for an injunction and it was nothing to do with Mr Ramsay that it succeeded.” Mr Palmer said the corporate fraud unit had had a very considerable effect on the maintenance of discipline and probity in the commercial arena.

Detective Inspector lan Hastings, head of the joint police I.R.D. team investigating GST fraud, said this evening that he had been told by superiors not to comment on the inquiry. A police spokesman confirmed Mr Evans was not arrested. The only person arrested yesterday by the police team investigating tax fraud was a barrister, aged 43, whose name was suppressed by the District Court in Auckland. Mr Evans said from his Remuera home last evening that Mr Bolger should check his facts with the police.

“I was not arrested and charged with GST fraud today. That is the only statement I have to make,” Mr Evans said.

He declined to make any comment on Mr Bolger’s allegation. Mr Evans and his wife, Pandora, were among those listed as part of the “Gang of 20” by the nowsuspended Justice Department solicitor, Mr Keith Peterson, in an internal department memorandum Mr Bolger put before Parliament in May.