Prosecutors bid to hear evidence from senior Treasury official about Crown retail deposit scheme is rejected.
A witness who prosecutors wanted to give evidence on the most serious charge faced by three South Canterbury Finance principals cannot be called.
Former SCF chief executive Lachie McLeod and two of the company's former directors, Edward Sullivan and Robert White, are defending charges brought against them by the Serious Fraud Office.
According to Justice Paul Heath, who is presiding over the trio's trial in the Timaru High Court, the most serious of the charges relates to SCF's application to join the Crown retail deposit scheme, which was managed by Treasury.
SCF went into receivership in 2010, owing about $1.8 billion, but because of the company's participation in the scheme, 35,000 SCF investors were bailed out by the taxpayer to the tune of $1.7 billion.