Allan Hubbard

Wellington, July 16 NZPA - Supporters are setting up a trust fund for South Canterbury businessman Allan Hubbard, who said today he would fight the Government's decision to put his business interests in statutory management.

Mr Hubbard has called for a commission of inquiry into the decision to put him into statutory management and has also hired law firm Russell McVeagh to challenge the decision, TV3 reported.

The Government last month appointed statutory managers to Aorangi Securities Ltd and the business interests of Mr Hubbard and his wife Jean. South Canterbury Finance, a company associated with him, is not in statutory management. The action came after a complaint by an Aorangi investor who had not received a prospectus.

But the move was greeted with disbelief in Timaru, where Mr Hubbard, 82, is regarded as a pillar of the local community.

Supporters, including prominent Taupo rescue helicopter pilot John Funnell and former Gore mayor Ian Tulloch, who have already set up a Facebook site called Help Allan Hubbard, said today they were forming a Hubbard Trust Fund, which would assist Mr Hubbard and his wife Jean, investors in Aorangi Securities and the other Hubbard organisations under statutory management.

"Many of the investors have their life savings and are facing financial hardship as a result of their interest payments being frozen," Mr Funnell said.

"Mr Hubbard has been using his weekly allowance from the statutory manager in an attempt to assist these investors."

But the Hubbards have also been caught short themselves.

Mr Hubbard revealed today that his wife ran out of money paying for groceries at a supermarket when they were first put into statutory management.

"The groceries came to $23 and my wife only had $20," he said. "So she took three items out of her supermarket basket and put them back on the shelf."

Mr Hubbard said it was humiliating to be kicked out of his office, have his mail opened and incoming cheques seized.

He wants more controls put on the Serious Fraud Office, which is investigating the Hubbards. Its head Adam Feeley went to Timaru at the start of the case.

"You'd think he'd have something better to do, but he'd obviously formed the view he had caught New Zealand's arch criminal gang. What has he caught? A raspberry I'd say," Mr Hubbard told TV3.

The first report by statutory managers this week revealed inadequate record keeping but Mr Hubbard said he and his wife were happy to record matters the old fashioned way. They do not have a computer.

He said he was worried people dependent on payments from his frozen funds.

"It makes me feel terrible. If I had any cash stacked up in the backyard I'd dig it up. But unfortunately I don't have any."

In a letter to the more than 400 investors in Aorangi Securities, statutory managers Richard Simpson and Trevor Thornton of Grant Thornton said this week the assets and investments could remain frozen for some months.

There was evidence of an intricate and complex relationship between Aorangi, Te Tua charitable trust, and the affairs of Mr and Mrs Hubbard and other parties, they said.

A lack of paperwork had been a problem, and after three weeks the managers said they did not fully understand the financial position of the business.

Mr Funnell said details would be released on Tuesday about where donations could be made to the trust fund.