I guess "There are extensive confidentiality orders in place in respect of the liquidation application, which limits the information the Administrators can provide." is reasonable if ultimately it benefits the company owners. Though I suspect they will get sweet FA once the watershed moment opens the gates of more bads news for them.. In the meantime everyone can take comfort that the liquidators are beavering away accumulating fat fes for their firm. Someone has to keep the market for exotic cars and mansions liquid.
“Evidence of serious impropriety, chronic insolvency and failure to comply with Reserve Bank directions were reasons to order the immediate liquidation of failed insurer CBL Insurance, the High Court heard”
If I hadn’t lost a fair bit of dosh on CBL I would find it all very funny. To tell the truth though, I do still find it all a bit of a laugh albeit a very expensive one. I was first alerted to CBL at the NZSA agm. Peter Harris did a presentation and at the time I thought he was a very unimpressive individual and looked like he was still living with his mother. As time went on CBL share price appreciated and EY named him as Entrepreneur of the year so I decided to throw a bit of cash at it. I think I should have trusted my Alley Cat instincts and stayed well clear.
The quotes that really make me laugh are
Chair of the EY judging panel said that Peter Harris was a “true master Entrepreneur”
The judging panel said that Peter Harris knew his business inside out and was very modest and had a good story to tell.
I suspect this saga will end with Mr Harris doing Jail time. I am sure the chaps at Mt Eden will take an interest in Mr Harris. He would be well advised to keep a firm grip of the soap when he’s having a shower.
Actuary Geoffrey Atkins, who reconstituted the company’s historical balance sheets based on analysis by actuarial firm Finity used in the RBNZ’s investigation. Mr Atkins concluded CBL Insurance had been balance sheet-insolvent since 2013.
I wonder what Auditors audit. Or do they just pick up fat cheques for ticking boxes?
Experience tells me that most of the audit legwork is done by new graduates who will pretty much believe whatever they are told.
It would be a fascinating spectator sport to watch the liquidators try to recover the audit fees. And the various fees paid up to and after the NZX listing. Up there with tent-pegging or polo.
Or watching worms try to struggle and squirm out of cans. . .
Bookmarks