Singapore probe urged

By DANIEL RIORDAN

Act MP and former market surveillance panel member Stephen Franks has asked the sharemarket regulator to investigate Singapore Airlines' role in Air NZ's recent travails.

The panel is already reviewing Air NZ's compliance with the disclosure requirements of the Stock Exchange's listing rules, working closely with the Securities Commission.

The panel hopes to report its findings soon and the commission will then consider whether it needs to take further action.

In his letter to the panel, dated yesterday, Mr Franks refers to what he calls the "extraordinary revelation" by Air NZ chairman Dr Jim Farmer this week that he considers Singapore's actions to have been prompted by interests other than those of Air NZ.

Singapore owns 25 per cent of the national carrier, and is poised to lift that stake under a proposed $850 million rescue package that involves Government assistance. Singapore's board position will also be strengthened.

Mr Franks said the panel should be investigating "with a view to taking whatever steps are necessary to protect other shareholders from potential misuse of voting power by Singapore Airlines and potentially Brierley Investments". Brierley owns 30 per cent of Air NZ and, like Singapore, is set to lift its stake by pumping $150 million into the national carrier.

Mr Franks said an inquiry was needed into the background to Dr Farmer's warning.

Air NZ's minority shareholders should do whatever they had to to prevent their interests, and those of the company, being subordinated, he said.

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