Concern support fund will not be enough for the needy

The Hubbard Support Fund had by yesterday raised $25,000 but the trustees are worried there is not enough money to help the many elderly people who have had their funds frozen by the statutory manager.

Trust spokesman John Funnell told the Otago Daily Times that he was hearing some harrowing tales from elderly people who were forced to ask for support from Work and Income.

"One lady living on her own had invested her entire life savings with the Hubbard managed funds. That's what she used to pay her power and food with. She has medical issues and her situation has not been helped by the statutory manager withholding all her payments.

"She has been pleading with the manager to make some payments but I don't know how she will go."

The woman had to go to Work and Income to get some money. While the staff there had been helpful, the money she received was not enough to live on, he said.

Last month, the Government took the rare step of appointing statutory managers to Aorangi Securities, seven charitable trustees and business interests of Allan Hubbard and his wife Jean.

The couple have engaged law firm Russell McVeagh to challenge the move.

Mr Hubbard said it was disgusting and humiliating to be kicked out of his office, have his mail opened and incoming cheques seized.

Mr Funnell and the other trustees - former Mataura mayor Ian Tulloch and David Williams, of Fairlie - were meeting yesterday to decide how to best distribute the money that had been deposited with the trust.

Mr Funnell said he and his fellow trustees were "pleasantly surprised" with the amount of money but were worried it would not cover the needs of those people who were not receiving their monthly payments from the Hubbards which they used to pay their bills.

"It is disturbing to have so many elderly people suffering because their monthly payments have stopped. What worries me is whether we will have enough money. I heard today the statutory manager might make some payment but we have not heard any more."

The priority for the trustees was to identify the people with the most needs. Already, they had heard from some people with sad stories, but the trustees were sure there were many more, he said.

• Once listed as the South Island's richest man, Mr Hubbard has this year been omitted from the National Business Review's rich list. The NBR said that because Mr Hubbard was in statutory management, it had not been able to accurately assess his value.