Hobbs earned big rewards in helping run failed Strategic

Jock Hobbs

Former All Black captain Jock Hobbs earned big rewards for his part in running the now-failed financier Strategic.

Hobbs, New Zealand Rugby Union chairman, was Strategic's chief executive officer until ex-Hanover chief Kerry Finnigan took over on November 1, 2005.

Hobbs has a stake in the business which failed after specialising in lending to high-risk property projects here, in Australia and Fiji.

Strategic's June 2009 accounts showed he earned $175,000 executive director remuneration in the year to June 2008, cut back to $44,000 in the June 2009 year, when he stepped back from the then-troubled business and was taking a less public role.

Hobbs also earned $34,000 as a non-executive director from October 1, 2008.

Hobbs has kept big stakes in Strategic's network of related-party businesses.

Separate notes to the June 2009 accounts showed Hobbs earned $77,500 in the June 2009 year for "director's remuneration" for his directorship of these associates. Those related parties included businesses crucial to Strategic's complicated set-up, which is now the task of receivers at PricewaterhouseCoopers to unwind - a task receiver John Fisk predicted last week would be difficult and long because of the complicated nature of Strategic's loan book.

Hobbs remains a director of much of this network, which includes Strategic Mortgages, a 100 per cent subsidiary of Strategic Finance which got its money pipeline from the 13,000 investors, many of whom were retirees.

Hobbs has an extensive list of businesses. Companies Office records show Michael James Bowie Hobbs of Wellington's Seaview Tce in Northland is a director of Blind Pig Properties, MJBH, Strategic Finance (in receivership), Strategic Investment Group, Seaview Corporate Trustee, New Zealand Rugby Promotions, Computerised Match Ticketing, Rugby World Cup (New Zealand), World Cup Rugby (New Zealand), Sports Network, Strategic Nominees (in receivership), Rugby New Zealand 2011 and Haldons.

Last week, Hobbs offered to resign as New Zealand Rugby Union chairman over the collapse of Strategic, which went into receivership on March 12, unable to return $417 million to investors.

His offer was made at the NZRU board meeting in Wellington on Thursday but was rejected, a Sunday newspaper reported.

Hobbs also serves as chairman of Rugby New Zealand 2011, the company tasked with managing the World Cup in New Zealand next year.

Hobbs wrote directly to investors over many years, personally recommending the financier's activities and offering up to 11 per cent annual interest.

"I commend the issue to you," he wrote in a June, 2002 investment statement when Strategic - then calling itself investment bankers - was raising capital.

Hobbs told the media he was "honour-bound" to make the resignation offer to NZRU.

"If you don't have the confidence of the board then you should go immediately," Hobbs said.