Absent directors let off the hook

By DANIEL RIORDAN aviation writer

Two of seven past and present directors of Tasman Pacific Airlines (aka Qantas NZ) who faced charges relating to the failed airlines' accounts are off the hook - because they did not attend any of the company's board meetings.

Trevor Farmer and David Skeggs won't be in court next year when the Crown prosecutes their five colleagues.

A two-week trial date for the Auckland District Court starting on July 22 was set yesterday for David Belcher, Ken Cowley, Kevin Doddrell and Fred Watson.

Mr Farmer's alternate, Rob Campbell, will appear on September 16 in a trial set down for one week, although that might become moot depending on the outcome of the first trial.

Two trial dates were set because Mr Campbell has separate legal representation.

The five each face three charges brought under the Financial Reporting Act 1993 relating to the alleged failure of Tasman Pacific and its sole shareholder, Zazu, to prepare the airline's signed accounts.

Each charge carries a potential penalty of up to $100,000. Tasman Pacific collapsed in April, leaving more than 1000 staff without jobs and creditors owed more than $100 million.

Wellington QC Hugh Rennie will prosecute both cases.

Crown lawyer David Johnstone said at yesterday's pre-trial hearing that he understood the defence for the four directors planned to call witnesses whose testimony would take five days.

He said the prosecution's case might not take as long as the defence's, and he believed a prima facie case proving the charges could be easily made.

The lawyer representing the four directors, Tim Allan, said outside the courtroom that his clients believed the charges were unfounded.

Richard Craddock, QC, who is representing Mr Campbell (and Mr Farmer), had no comment.

No explanation was given in court for dropping the charges against Mr Farmer and Mr Skeggs, and Mr Johnstone declined to comment afterwards.

However, the Business Herald understands the Companies Office, which has been investigating the case, has been unable to find any record of the pair having attended any board meetings - the normal forum for discussions on the financial accounts.

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