DHB silent on Swann assets chase

The Otago District Health Board is not responding to questions about the future of its civil court claim over assets belonging to former employee and convicted fraud Michael Swann.

In October 2006, the board lodged a claim to recover losses of about $16 million.

It was also granted an asset protection order so Swann's assets could not be disposed of.

However, on March 8 this year, the day Swann was sentenced to nine years and six months' jail, the Solicitor-general initiated proceedings under the Proceeds of Crimes Act.

An order, granted by Justice Lyn Stevens in the High Court, restrained all assets "owned or under the control" of Swann.

With two taxpayer-funded organisations both, apparently, pursuing Swann's assets independently, the Otago Daily Times has attempted during the past two days to find out whether the health board case might be withdrawn.

Board solicitor Fraser Goldsmith would say only: "It's an interesting question and there isn't a clear answer to it."

A source close to the case suggested the difference between the two proceedings was that in one, the health board would get the money.

In the other, the Crown would get the money.

Under the Proceeds of Crimes Act, an application, if granted, would put Swann's assets under the control of the Official Assignee who would then distribute proceeds to creditors.

Prof Mark Henaghan, of the University of Otago, said last night using the Proceeds of Crimes Act was a "better way of dealing with it", partly because civil proceedings were so drawn out and costly.

He did not consider it would have the effect of stopping civil proceedings, "but I think it's a more efficient way of dealing with it".

Swann's assets, including cars, boats and property, have been valued at $5 million.

Details of the Proceeds of Crime Act proceedings have yet to be revealed.

The ODT has been told the restraining order, granted by Justice Stevens, includes a schedule of vehicles considered to belong to Swann and affidavits sworn by staff from the Serious Fraud Office.

Swann is also understood to have been notified and there are believed to be no orders restricting publication.

However, Marie Grills, of the Crown Solicitor's office, declined to release the order yesterday.

The Serious Fraud Office is asking the public to telephone Ian Varley on 0800 109 800, ext 863, with information about any of Swann's assets that "remain outstanding".

On Monday night, police seized from Hampden a Rolls-Royce which is believed to be connected with Swann.

Inland Revenue would not comment yesterday on Swann's case and any claim it might make on the assets.

Swann's lawyer during the trial, John Haigh QC, conceded Swann might have breached the Income Tax Act.

Mr Haigh is no longer acting for Swann.

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