SCF Fraud Charges Laid Today.

Mark Hubbard's picture
Submitted by Mark Hubbard on Sun, 2012-01-15 23:06

Quoting Stuff:

The charges include entering the Crown Guarantee Scheme by deception in 2008 (which cost $1.58b), omitting to disclose a related party loan ...

So, 93% of the make-up of the supposed $1.7 billon fraud was entering the Deposit Guarantee Scheme, which itself was one of this country's biggest frauds, a fraud perpetrated on New Zealand taxpayers by politicians, a mechanism and the unintended consequences of which ensured SCF would fail.

It should be the politicians and bureaucrats in the courts, as well. Surely, they had all the relevant information to be checking on the firms entering the scheme, and they were auditing thoroughly all the information they were receiving, given the huge sums involved? How did all that supposedly fail so grandiosely? If in the private sector, heads would've certainly rolled. How come the government administrators of the Deposit Guarantee Scheme get to walk away with not only their freedom, but their careers, unscathed.

How farcical.

Worse. All the media beat-up about this being the biggest corporate fraud in history, and what we're really talking about is simply a firm entering a government scheme, into which, at the time, they were being virtually romanced by the bureaucrats because they ignorantly believed it would save the company by stopping a run of SCF's funds - that was, after all, the entire rationale of the Guarantee Scheme. (As opposed to the truth in which by the government recklessly offering risk averse investors a risk-less higher rate than bank term deposit, it destroyed more than twice the investor funds it would have done if the Guarantee Scheme had never been instituted in the first instance. Although it didn't destroy investor funds, did it. It destroyed my tax money. Yeah, there's criminality here all right.)

Politicians and bureaucrats; you wouldn't want them running your life for you.


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