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ISSN 1172-4153 | Volume 2 | Issue 26 |
False declaration deepens scandal Blitzkrieg injunction fails, new allegations tonight
| 20 February 2009
on the
INSIDE
By Ian Wishart
The managing director of a finance and banking services company trying to get listed on the NZ Stock Exchange provided a false declaration to regulators in his bid to get a banking licence for one of his companies. WSD Global Markets Ltd CEO Riaz Patel is in the spotlight this week after his company’s chairman, Matt Robson, tried and failed to get an interim injunction gagging TGIF Edition from publishing tonight’s story. TGIF has been told Patel,who was seeking a Cook Islands tax haven banking licence for a WSD sister company named WSBC Bank,was required to swear an affidavit in 2004 as to his good character to show he was a fit and proper person to run a bank. The affidavit included a question about whether any company he was a director or significant shareholder in had ever been named in a court case or judgment relating to breaches or alleged breaches of the law. Despite being the director of an Australian company whose offices were raided and the staff charged with money-laundering and later jailed, TGIF has learned Riaz Patel answered ‘no’, in his statement made on oath, and Cook Islands financial regulators hit the roof when they found they had not been told the facts in a sworn affidavit. It’s a devastating blow on top of a week of devastating blows for WSD Global Markets Ltd, which first tried to get a surprise injunction against TGIF Edition last Friday and failed, then tried again on Wednesday after papers were served on Investigate magazine by lawyers acting for WSD and its chairman, Matt Robson. Robson’s clumsy kneejerk response to inquiries
KERRY IN GAZA An historic vist Page 9
SLUMDOG WINS?
Seen the movie yet? Page 13 TROPICAL HEAT: the ramshackle office of a “US$150m” Cook Islands tax haven bank. PHOTO: Cook Islands News
during the initial phase of preparing our first story, than attacking the newspaper’s work as“totally inaccurate”and telling journalists he was preparing to sue for defamation,gave TGIF the necessary incentive to start digging very deeply into the WSD story. Not that we’ve had to do all the work ourselves.Robson, the deputy leader of Jim Anderton’s Progressive Party,obligingly attached a Serious Fraud Office Section 9 Notice to his affidavit seeking the injunction which, as you’re about to see, did him no favours.
“WSD complies with all statutory requirements,” Robson huffed in his affidavit filed with the court. “In November 2008, the Serious Fraud Office issued a compliance notice to produce documents in relation to another entity under investigation, WSBC Bank Ltd. “WSD complied fully with the notice and provided the documents in its power. The SFO has advised that it has no further interest in WSD, as it was not the party being investigated.
ONION SECRETS
Why you need them Page 16 Continue reading
UK exec ‘tele-commutes’ from bop Wellington, Feb 20 – The chief financial officer of a local authority in England has kept his job despite moving to Omokoroa in the Western Bay of Plenty. Mat Taylor, 44, is being paid a stg20,000 ($NZ56,700) salary to work for the Fenland District in Cambridgeshire one day a week until a permanent replacement can be found, but critics of the arrangement said it did not represent good value for taxpayers. Mr Taylor had worked for the council for five years before leaving last October, heading first to Australia
with his wife Kim and their three children. Despite a time difference of 11 or 13 hours – depending on whether daylight saving is in place – he has been using a Skype video link to keep in touch with colleagues. Usually he scrutinises the council accounts and books at night, and in January he attended a council meeting without leaving home. He presented the council’s stg16 million annual budget over the internet using a Skype link. Mr Taylor told the Bay of Plenty Times it was a win-win situation:“We do stuff as a family in the day
and then I work from 9pm to midnight. “When I go online there (to Fenland) it’s still dark and raining – it reminds me of all the reasons why we left the UK.” Mr Taylor said Skype had been such a success for his one-on-one calls and the council meeting that other members of staff had started using it. Instead of travelling an hour each way from the council headquarters in the town of March to Cambridge, Skype was being used as an alternative, saving staff time and fuel costs. Mr Taylor said there had been a lot of envy from
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his colleagues, particularly as Britain experiences an Arctic chill and blizzards. He said he expects to be a part-time finance officer until November and then he will look for another part-time job. In 2004, New Zealand had a police officer, Chris McKee, then aged 48, who lived in Dunedin but physically commuted to his job as a constable with London’s Metropolitan Police. Flexible working hours which let him do two months on and two months off, while his family remained in New Zealand. – NZPA