Bella Vista trial: Director Danny Cancian accused of lying in court

Danny Cancian, former Bella Vista boss. Photo / File

Bella Vista Homes' former director Danny Cancian has been accused of lying on the stand during his second day of testifying in the court case surrounding the failed development company.

Cancian is among the first defendants in the judge-alone trial at Tauranga District Court, more than four weeks after the case resumed last month.

Today, he continued to blame others for building and compliance failings, resulting in the evacuation of 21 houses in various stages of completion of The Lakes subdivision in March 2018.

The company, Cancian, The Engineer Ltd, its director Bruce Cameron and bricklayer Darrel Joseph are defending a raft of charges.

When questioned by prosecution counsel Richard Marchant , Cancian disputed Bella Vista Homes Limited was the employer of people working on the subdivision, suggesting a separate company, Bella Vista Management Services, was responsible instead.

Several versions of the company's name were heard before Marchant questioned what the exact name was.

"Are you making it up as you go Mr Cancian? It was your company, what's its name?"

"I just told you: Bella Vista Homes Management Services Limited."

At this point, Cancian was seen smirking in the dock.

"Do you find it funny Mr Cancian?" Marchant said.

Cancian replied: "Am I not allowed to smile? Sorry about that."

After more questioning, Marchant said: "You're lying Mr Cancian, aren't you?"

Cancian replied: "No, I'm not."

Marchant: "If this other company existed it was because Bella Vista Homes was in deep financial strife and you were funneling money out of Bella Visa Homes weren't you?"

Gasps could be heard from the public gallery before Cancian replied: "I'm doing something that you're not used to Mr Marchant - I'm telling the truth."

Judge Paul Mabey then instructed Marchant and Cancian to stop before summarising much of the morning's cross-examination.

The Bella Vista trial continues in Tauranga District Court, where the development's former director has testified he was let down by others. Photo / File

The court heard that the first two liquidators who investigated the demise of Bella Vista Homes said Cancian's mid-2016 $1.3 million buyout of cousin and former co-director and shareholder Daniel De Martin had a negative impact on the company, which was insolvent.

The court heard Cancian did it "under duress", despite the company owing $4.5m, which Cancian disputed.

Judge Mabey referred to yesterday's evidence from Cancian that De Martin had made death threats and Cancian had no choice but to pay him.

The judge asked Cancian whether he sought any help from police.

Cancian said he made a phone call but did not have any documentation or any other correspondence with the police.

"So you're saying that to meet Mr De Martin's demands which, in your description [was] enforced upon you, you were risking the company's insolvency," Judge Mabey said.

Cancian replied: "Yes, but the company wasn't insolvent."

The court heard that at the point of the buyout, Bella Vista Homes was deemed to be in "financial ruin".

The charges were brought by the Tauranga City Council and relate to the defendants allegedly carrying out building works that were not in accordance with the Building Act, in particular a building consent.

Months of pain followed for the homeowners and the council, which finally bought the affected properties for $14 million.

The alleged defects were discovered after Bella Vista Homes had gone into liquidation in November 2017.

Defence counsel for the remaining defendants declined to cross-examine Cancian.

The trial continues.