1 00:00:00,120 --> 00:00:04,359 Speaker 1: Auckland property developer Duval Group has been placed in statutory management, 2 00:00:04,400 --> 00:00:06,800 Speaker 1: which is a pretty unusual move by the government. In fact, 3 00:00:06,800 --> 00:00:09,520 Speaker 1: it's so unusual the Governor General has to sign off 4 00:00:09,520 --> 00:00:11,880 Speaker 1: it and sign off on it and Gibson as the 5 00:00:11,880 --> 00:00:15,160 Speaker 1: Herald's property editor and with us hey Ann hey Heather 6 00:00:15,400 --> 00:00:18,000 Speaker 1: now the Minister when signing off on this himself says 7 00:00:18,040 --> 00:00:19,840 Speaker 1: that part of it is to stop the liquidator is 8 00:00:19,880 --> 00:00:22,320 Speaker 1: quarreling with each other over various parts of the business. 9 00:00:22,320 --> 00:00:23,840 Speaker 1: But it's got to be more than that, right. 10 00:00:25,880 --> 00:00:29,400 Speaker 2: Very good question. We don't really know because we don't 11 00:00:29,720 --> 00:00:35,720 Speaker 2: have access to the initial Receivers and Managers report, which 12 00:00:36,000 --> 00:00:40,760 Speaker 2: PwC handed to the High Court at Hamilton last Friday, 13 00:00:40,800 --> 00:00:42,879 Speaker 2: So that was a bit of a lightning world for 14 00:00:43,080 --> 00:00:46,000 Speaker 2: publicity on develop We all thought that in the media 15 00:00:46,040 --> 00:00:47,920 Speaker 2: that we might get a copy of that report, but 16 00:00:48,560 --> 00:00:52,640 Speaker 2: in fact gone to PwC and gone to the if 17 00:00:52,640 --> 00:00:55,240 Speaker 2: you may and saw the copy of that report and 18 00:00:55,280 --> 00:00:58,440 Speaker 2: asked the Minister for it as well, and it hasn't 19 00:00:58,440 --> 00:01:01,880 Speaker 2: been released. So we don't really know what's going on here. 20 00:01:01,960 --> 00:01:04,160 Speaker 2: We know that it is complex and serious. 21 00:01:04,319 --> 00:01:06,080 Speaker 1: What would be the reason for them sitting on it 22 00:01:06,120 --> 00:01:06,920 Speaker 1: and not releasing it. 23 00:01:08,840 --> 00:01:11,480 Speaker 2: Don't know and neither does a minister. So I said 24 00:01:11,520 --> 00:01:15,600 Speaker 2: to Andrew Bailey, have you seen the PwC report and 25 00:01:15,680 --> 00:01:20,080 Speaker 2: he said he certainly had significant advice from the Financial 26 00:01:20,080 --> 00:01:23,120 Speaker 2: Markets Authority and making a decision like this, which was 27 00:01:23,520 --> 00:01:25,800 Speaker 2: to take it to cabinet and he said yes, he 28 00:01:25,880 --> 00:01:29,240 Speaker 2: had access to information. I asked him how worried was 29 00:01:29,280 --> 00:01:31,959 Speaker 2: he is a minister when he read that report and 30 00:01:32,000 --> 00:01:35,240 Speaker 2: he said, as a result, he made the recommendation to 31 00:01:35,560 --> 00:01:40,000 Speaker 2: Cabinet that they pass this quite unusual thing order in council, 32 00:01:40,120 --> 00:01:43,840 Speaker 2: as you say, signed off by the Governor General based 33 00:01:43,959 --> 00:01:45,640 Speaker 2: on the advice that he received. 34 00:01:45,680 --> 00:01:49,960 Speaker 1: Today he says he's concerned about the Devile Group because 35 00:01:50,000 --> 00:01:53,360 Speaker 1: of allegations of misconduct. Are those allegations in the past 36 00:01:53,480 --> 00:01:55,600 Speaker 1: or are those allegations currently. 37 00:01:56,200 --> 00:01:58,720 Speaker 2: Well, he said it's obviously serious enough for him to 38 00:01:58,760 --> 00:02:01,600 Speaker 2: take the recommendation and seek the cabinet approval. And he 39 00:02:01,640 --> 00:02:05,760 Speaker 2: said what the Cabinet was keen on doing was protecting 40 00:02:05,760 --> 00:02:07,720 Speaker 2: the interests of all creditors. Now, he said, there are 41 00:02:07,720 --> 00:02:11,720 Speaker 2: a number of developments. There's property developments in Auckland, mainly 42 00:02:11,800 --> 00:02:15,960 Speaker 2: apartments in South Auckland and maybe West Auckland too, and 43 00:02:16,120 --> 00:02:20,680 Speaker 2: he wanted to ensure where possible that those were completed 44 00:02:20,800 --> 00:02:24,040 Speaker 2: and his words were, you don't go on a journey 45 00:02:24,480 --> 00:02:27,359 Speaker 2: like this without significant concerns. 46 00:02:27,880 --> 00:02:32,720 Speaker 1: Okay, Are Kenyon Clark and his wife speaking No. 47 00:02:32,960 --> 00:02:36,320 Speaker 2: I've been putting questions to them since the FMA moved 48 00:02:36,480 --> 00:02:39,840 Speaker 2: on them on the second and the police were at 49 00:02:39,880 --> 00:02:43,519 Speaker 2: there were the house as well. I've been putting questions 50 00:02:43,600 --> 00:02:47,000 Speaker 2: to Charlotte and Kenyon Clark, to the chairman of Duval, 51 00:02:47,160 --> 00:02:50,760 Speaker 2: John Dalzel, and to Owen Culiney, who is a director 52 00:02:50,840 --> 00:02:53,440 Speaker 2: of the company and a lawyer based in the White 53 00:02:53,480 --> 00:02:56,680 Speaker 2: Cattle and we haven't had any response at all, and 54 00:02:56,760 --> 00:03:00,320 Speaker 2: it may be that they cannot talk given the fact 55 00:03:00,360 --> 00:03:06,120 Speaker 2: that there are interim receivers, managers and now statutory managers 56 00:03:06,320 --> 00:03:09,200 Speaker 2: involved in the So this is highly unusual because the 57 00:03:09,280 --> 00:03:11,720 Speaker 2: last time I could find that something like this occurred 58 00:03:11,840 --> 00:03:15,200 Speaker 2: was fourteen years ago. Were the couple of entities of 59 00:03:15,280 --> 00:03:17,119 Speaker 2: South Canterbury Finance right? 60 00:03:17,200 --> 00:03:18,960 Speaker 1: Yeah, Okay, that was a big deal, hey, and thank 61 00:03:19,000 --> 00:03:22,400 Speaker 1: you very much, really appreciated. An Gibson, the Herald's Property editor. 62 00:03:23,120 --> 00:03:26,280 Speaker 1: For more from Heather Duplessy, Allen Drive, listen live to 63 00:03:26,360 --> 00:03:29,400 Speaker 1: News talks. The'd be from four pm weekdays, or follow 64 00:03:29,440 --> 00:03:31,160 Speaker 1: the podcast on iHeartRadio