A business expert doubts anything will come of damning allegations against the former directors of Hanover Finance – despite nearly 14,000 investors being caught up in its demise.
Late last year Allied Farmers bought Hanover, but its CEO Rob Alloway claims there have been dodgy deals and “creative accounting”.
Amongst the allegations are that Hanover and a select group of property investors inflated the price of assets, cut personal deals and hid the true ill-health of the failed company.
Authorities have been given evidence of the dodgy dealings by the company's new owner, where personal loans were written off, asset values inflated and debts hidden.
In an interview with Radio LIVE this morning, business commentator Brian Gaynor said the Securities Commission and the Companies Office has a history of doing nothing and he believes the change must come from the Government.
“The system we have at the moment isn’t very robust and we need to change it,” he says.
“This Government has promised [a change] so we need to keep our fingers crossed and hope they deliver.”
The Securities Commission would not confirm if they are investigating the allegations.
Radio LIVE