GUEST BLOG: Bryan Bruce – Former PM ordered to pay creditors $6 million

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National’s Jennhy Shipley became New Zealand’s first woman Prime Minister after a coup that overthrew Jim Bolger.

The legacy of both the Bolger and the Shipley neoliberal governments was that they opened up a huge gap between the rich and the poor in our country. They slashed benefits for example , as a result of which all the diseases that affect poor children the most all shot up.

Since leaving parliament Shipley has held many company directorships including a current one with Oravida which, amongst other things, sells bottled water to China.

Today she has been ordered to pay $6 million to the creditors of the failed construction company Mainzeal, as part of a $36 million award by the High Court against the company’s directors.

The reason? Allowing the company to continue trading while insolvent.

As a result of the Mainzeal collapse a lot of tradesmen were not paid , some of their businesses went under, and it caused their families a lot of stress.

Shipley lost the the 1999 election when voters asked themselves the question “What became of the decent society?”

What indeed

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(And question, by the way,that is still very relevant today).

As many of you know I don’t allow abusive comments on my page and that rule holds as true for this post as it does for any other.

It’s possible that Shipley and the other former Mainzeal directors will appeal the decision, and get a more favourable ruling. But I suspect the High Court got it right today …and a good thing too.

 

Bryan Bruce is one of NZs most respected documentary makers and public intellectuals who has tirelessly exposed NZs neoliberal economic settings as the main cause for social issues.

38 COMMENTS

  1. Listening to radio reports yesterday, although i could be wrong, i got the impression that this bunch will probably be covered by insurance anyway? So much for justice.

    • Personal responsibility is for the peasantry, not monied aristos like Dame Jenny. It’ll be ‘how sad, too bad, never mind’, and all concerned will carry on as though nothing untoward occurred. There will be zero personal cost to anyone… other than all the subbies and tradies left out of pocket by Mainzeal’s disintegration.

  2. I’m going to come out of my self imposed departure from the echo-chamber, brain fartery the comments section on TDB has become for this one. ( And don’t get me wrong. I can brain-fart it with the best of them so no disrespect.)

    shipley should go to prison and be asset stripped down to her bloomers.
    No! Really. She’s a traitor.

    From a 2002 NZH report which quotes her as saying:
    ” I came into politics determined to make a difference and improve the prospects for the New Zealand people.”

    Then this:
    “She and Ms Richardson were soon to become the public’s most reviled politicians as they worked hand-in-hand – Ms Richardson writing her infamous “Mother of all Budgets” in 1990, and Mrs Shipley delivering bad news as she cut welfare benefits.”
    Now? Look closely at the above. You may see a clash of values there.
    They gaily clash because she and richardson are narcissistic sociopaths and when roger douglas released the terrible monster that most now know as ‘neo liberalism’ ? Suddenly, crooks like shipley, richardson etc,etc had the fertile hunting grounds handed to them empaled on a silver dagger. All they needed to do was to back-stab their way into power, asset strip us out after those silly old laws were changed and new acts to enable that were written into our political mandates.
    But there is one thing they did that is even worse than that.
    Like shipley, bolger was a farmer/was married to a farmer/was in deep within the deviant hierarchy of the farming elite. Those similar ilk few farmers who, once the penny dropped, realised that by using farming back ground experience they could, and did, fleece the other farmers, pardon the pun, of their money, lives, family and have created a dysfunctional rural underclass that all city people loath as though of some moral obligation. And ironically, the poverty that trickles down from the effects of scum like shipley grifting primary industry funds off into their rapatious little bankster accounts has left our cities peoples in ruins.
    UB40’s tune “There’s a rat in the kitchen” https://youtu.be/0zSWqJGTa-I was surely written for those traitorous scum.

    God only knows why a documentary has never been made on the subject.
    The bizarre cone of silence that exists between farming reality and the moron-class idiot type who brandishes placards proclaiming “ She’s just a pretty communist.” has yet to be punctured.
    Do we really, honestly think that NZ/AO’s primary industry is wholly comprised of that kind of Ozark forest dweller mentality? Bryan Bruce? Can you explain that to me?

    There’s never been a documentary made on the Machiavellian pollutants that make NZ farming so sick. No one seems to care. All city people can see is the Disney Land version the MSM have told them to look at. It does leave me breathless, literally. I was thinking about how best to express my views here and now and I literally stopped breathing because ? How am I, humble me, ever going to get it past the glittering facades of the brainless jabber we’re bombarded with via the MSM?

    I’m in the process of building a Blog of my own. I’m feeling quite intimidated by the prospect if I must be honest because I’m a farmer ( Albeit without a farm. The BNZ in Timaru got that @22% interest on a swindled debt. Look it up!) so , ya know? All them there words an’ that? There’s so many? Who’d a thunk it?
    ( Get in b’hind ya mongrel! ! ) Sorry about that there. I feel weirdly compelled to maintain the stereotype.
    And one more thing. Shipley. Born in Gore. To a presbyterian minister. My home town. She’s a Goron too. Good God almighty.
    When I was born, out of wedlock, a presbyterian minister swung by the maternity home and tried to convince my mum to adopt me out into a decent Christian home.
    Wouldn’t that have a been ironic? I could have been shipley’s adopted brother!? And being fellow Gorons! We could have had babies! We didn’t so I don’t need to cut my penis off.
    Perhaps that’s why my mum made me promise with her last cancerous breath not to allow any religious fucker anywhere near her while she passes away. I dutifully obliged.
    ( On that note. Once, when we lived in Redcliffs in Christchurch prior to the earthquakes we’d get constantly hassled by God botherers. On Sunday mornings there was often a weak wristed knockety, knock, knock on our door. My partner would mumble, sometimes during a Sunday morning’s In flagrante delicto “ Oh fuck. I bet it’s the Christians” Sure enough. There they were. Grey faced and leaning forward slightly as if about to jump off a cliff. Or were just pushed. They never returned after I pushed past them once as I walked across the street, stood on top of the sea wall in my undies and bellowed “ Oi! All you Beachville Rd people! The Christians are coming! The Christians are coming! “ The “ Thanks for the heads up” feed back comments far outweighed the looks of scorn and snorts of indignation.
    William S. Burroughs once famously said: “ Never do business with a religious son-of-a-bitch. But if you do?” Get. It. In. Writing. Never trust someone with God on their side to tell them how to fuck you on the deal.”
    I’ll be back with a Blog address when I get it sorted out. Right now, it’s a mess so…
    Too much wine infused with good intentions and as we all know; the road to Hell is paved with good intentions.

    • Well I dunno about the pile on against the Christians, Countryboy , some of them are the best people I’d ever hope to meet. There’s good un’s and there’s bad un’s.

      Moving on , – you know how I feel about Douglas, Bolger, Shipley and the wretch, Richardson. Matter of fact they are all wretches. I think you and Mr Bruce are being far too polite and far too soft on them. Long prison terms for treason and the absolute disenfranchisement of, – up to and including all the monies they have profited from in investments , and then adjusted for inflation over a period of 3 decades would be more fitting, – AND including confiscation of all other non profit making assets ,… such as pleasure boats, vehicles etc.

      That would be more suitable as a recompense for the financial rort they perpetrated on the NZ public purse over those 3 long decades , perhaps.

      I think we could then just about call it square, don’t you?

      And perhaps the proceeds of those deviously acquired pecuniary ‘gains’ could go towards housing for the working poor in this country. Or perhaps upgrading our downgraded schools or hospitals.

      What say you?

    • Country Boy

      You are a tall tree on a mountain of seedlings.

      So be known, we all have great respect for you always.

      You make more sense than the whole parliamentary system put together.
      You are a mover and shaker.

      It’s people like you that should be our government, and hopefully will be one day; ‘Viva France’ http://www.newworldencyclopedia.org/entry/French_Revolution
      The French Revolution (1789–1799) was a period of ideological, political and social upheaval in the political history of France and Europe as a whole.

    • “The BNZ in Timaru got that @22% interest on a swindled debt. “Lots of people where caught with that one C B. I didn’t know about the concept of “Odious Debt” being legally unrecoverable in some jurisdictions but that episode must surely have qualified as odious debt. It was Douglas’s doing though rather than the banks, they were just the foot soldiers in that episode.
      Can we be sure you will post your blog address on TDB when it’s up?
      We will be watching for it.
      I wondered where you had gone.
      Cheers
      D J S
      ps back when I was a market gardener I relaxed a little late on christmas day morning reflecting that this would be my first day off work since christmas day the previous year. The god botherers arrived at 7.30.

  3. Thanks for reminding us Bruce of ” the decent society ”
    I remember when Bolger campaigned on it in 1990.
    We do have the decent society and it is alive and well for the rich and privileged.
    As is the ” brighter future ” that was promised and then delivered on for the same New Zealanders in 2008 by that shyster John Key and voted for by the public who would gain nothing from the promise.
    I hope Shipley is forced to pay it !!!!! i am sure the Chinese will helpone of their oldest friends.

  4. I sincerely hope the tradespeople are able to receive some form of compensation for their their losses from the $36m fine. But then I guess that depends on what emerges from the likely appeal.

    Also I can’t see any of the Mainzeal directors being stripped of their chairmanship of multi companies, or their titles either … you know, first offence and all that and don’t do it again, sort of thing!

    • Probably – based on a casual meeting with a digger contractor who regaled me with a story of how a Nat MP pulled the pin on a business deal and then lied in mediation – but he still voted for him.
      What to say?

  5. Any funding for Jenny’s other government-funded directorships have to be immediately reviewed. I will temper my words and show restraint here Bryan, how I’d like to unload though. I mean for her to beat down on the most vulnerable of society with her policies only to vomit up this in later years. Disgraceful.

  6. I and my fellow work colleagues had the misfortune of meeting Jenny Shipley whilst she was Minister of Social Welfare in the 90s.

    She asked one of my work colleagues as to what we thought of the Bay Collection Agency(the Agency the government of the day employed to collect debts). At that point we hadn’t even used Bay Collection and hadn’t had a clue as to how well they would do as a debt collector. All in all however I think we found them to be pretty damned useless. I think they actually created more debts for those who owed monies to NZ Income Support rather than reducing the debts.

    Putting it quite mildly but she(Shipley) was bloody useless and self serving as a Minister back then and was probably of the same habit whilst a director in Mainzeal.

    To this day I still find it rather puzzling that she jumped ship out of Mainzeal 2 weeks before it went bust. I got the impression she knew or someone in the government of the day had told her to get out of Mainzeal and she heeded that advice.

    Looking at the fact she has been ordered to pay back $6million to the creditors of the failed company I somehow think she will slime her way out of it.

    She is probably without morals or scruples but then I doubt her beloved National Party will be willing to pay the $6million.

    And as a result perhaps she will be the ONLY pauper in NZ who gained a knighthood and still keeps it(like Doug Graham)for her actions and tactics. She will say she has been driven to bankruptcy due to this demand she pay $6million.

    My thoughts however go out to those contractors that Mainzeal let down and failed to pay who may have been been driven to suicide. They are probably the ones who deserve the pity as well of their loved ones they left behind.

    But then and I will be facetious here about National and its current as well as former MPs is it does look like National don’t care about others especially those who have say mental illnesses. The best National can do is one of its MPs texts someone she had an affair with to wish he was dead.

    National MPs and especially former National MPs who gain knighthoods love money more than anything else. And any way to get more money even when it’s illegal doesn’t concern or bother them.

    Anyway has Eminem received a cent from National yet or are they dragging that out like they usually do?

    I doubt one cent of the $6million will be paid by one Jenny Shipley. It would be like them accepting responsibility for their actions and we know National are so allergic to accepting blame.

    • Bravo. Whatever form of self-satisfaction was impelled by her Presbyterian Manse upbringing. Contemptibility for her and Don Brash. Really love how this traitor of the NZ idea will put this idea in her personal CV.

  7. Hoist by her own petard. So desperate to appear competent and in control she couldn’t accept the fact that she and her fellow directors had been screwed over by the Mainland Chinese parasite Richard Yan. Being made to look a fool hardly compares with losing your livelihood to mongrels like Shipley.
    But after all they’re only working New Zealanders, these sub contractors hardly worth concerning oneself with when your’e part of the power elite . One’s avarice is the primary concern at all times.
    All of Yan’s NZ property on Waiheke should be confiscated.

  8. This doesn’t feel right.
    If the losses were greater than the $36m punishment, then why aren’t they recovering more from these people.
    It seems to be implying someone else was responsible, but I can’t see who, unless it was the auditors.
    If Shipley and the others were responsible for reckless trading, then they should be liable for the lot, every single penny including interest and penalties.
    And probably a stint in the lockup would show that this country is not soft on white collar criminals.

    • My guess? Because it is exhausting to be constantly wary of every little thing being a potential con.

      Humans evolved to trust each other in a tribe, after all. Being in a state of constant distrust runs counter to that.

  9. The kicker is the money taken from Mainzeal and ultimately its kiwi subcontractors, and “loaned” to Chinese businesses and not repaid, stealing from NZers to give to China. Driving the National business and many of its subbies broke.
    Sound familiar? It’s what National having been all about fir 9 years.

    Shipley is also hocking off kiwis water with Oravida taken for a pittance and given to the Chinese. Swamp kauri?
    She is also the chair for China construction bank.
    A traitor.

  10. Just let Burton handle it all darlings! Jen’s got a hairdresser’s appointment, then a fitting with Kaaarren, and then a flight to catch.
    I’m not sure she’ll be able to fit her appointment with the law in at the moment.
    Busy busy business!

  11. It is a testament to her lack of integrity that she has not resigned already from her other directorships after being found guilty…

    bettcha too that the little guy that lost the most and the clients who could afford it least get nothing from the ruling because our justice system and laws seems to have the lawyers and big players getting paid out while those poorest affected receive nothing…

    … and the lawyers will probably trawl it though the appeals courts to avoid paying out too…

    • Good point SaveNZ, about Shipley not resigning. An honourable person would, of course, have resigned without question.

      My long-term self-employed plumber was totally sunk, I think, when a building development he had the contract for, went bust. Either he or his wife told me about it, and then he vanished from the face of the earth.

      Karma catches – Doug Myers and Roger Kerr both caught cancer and died, so Jenny Shipley cannot count on the devil looking after his own.

  12. Haven’t weighed in on this one yet ..

    It’s hard to have antipathy for her time in office due to being so young at the time. Though her time in office is beside the point?

    Some people on here would see her imprisoned, which is probably fair, if she is guilty of committing fraud. It may even be fair if she has committed gross negligence.

    To bevsarcastic I would say; “there is no point in sending her to prison, National’s prison reforms have made rehabilitation futile.”

    She has been publicly disgraced and this has certainly been a costly fall from Grace! It is what it is – “pride comes before a fall”. Hopefully this will serve as a wake-up-call for her.

    • Not often I agree with you, Zack, but I think that’s a common sense approach. Prison serves no useful purpose, just another unnecessary expense paid by the taxpayer.

      Better to put her on trial for fraud (alleged), strip her ‘honours’, and remove her right to stand on any Board for the rest of her life. Ditto for her colleagues. That’s a more fitting end to her career.

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