Games board chief quits

Press, 5 December 1989, Page 1

Games board chief quits

PA Wellington The chairman of the Auckland 1990 Commonwealth Games board, Mr David Johnson, resigned yesterday after media reports of a police investigation into financial transactions involving other companies. The Commonwealth Games board sought Mr Johnson’s resignation less than two months before the fourteenth Games are due to open. It said in a statement he had agreed to the request and would remain on the board as a director. The board said its request had been made “solely in the interests of the Games” and it emphasised “there was no wish to prejudge matters.” Mr Johnson said he would take legal action against TVNZ, alleging he was defamed by a television report He said last week that the police had talked to him, as the chairman of First City Finance, Ltd, in relation to an inquiry into transactions of a Hamilton company and in tracing $l9 million. Mr Johnson said then he did hot expect the police to take any action against him. Three managers from a Hamilton company, Dairy Containers, Ltd, had been arrested to face charges including theft, fraud and false accounting. The Games Company is organising the Games on behalf of the New Zealand Olympic and Commonwealth Games Association and conferred with the association before “reluctantly” asking Mr Johnson to relinquish his position as chairman. The deputy chairman, Sir Earl Richardson, was appointed chairman to succeed Mr Johnson yesterday. / Sir Earl said, “Both the Games board and / the N.Z.O.C.G.A. hope that the police investigation is concluded soon and that Mr Johnson will have his, name cleared as speedily as possible.”