Watchdog's deputy chairman resigns

Donal Curtin will remain at the Commerce Commission but only in areas deemed to be free of any conflict of interest. Photo / Paul Estcourt

Donal Curtin has stepped down from his role as deputy chairman of the Commerce Commission but will remain a commissioner for the competition watchdog.

Curtin's resignation comes six months after the commission launched an independent investigation into disclosure issues relating to his involvement in finance and investment companies.

The investigation was concluded this year and a copy of its findings has been on the desk of Commerce Minister Simon Power for several weeks.

Yesterday Power said he had accepted Curtin's resignation and considered the offer was the "appropriate resolution of the issues that have been raised recently in relation to his disclosure of interests".

He said Curtin would remain a member of the commission and continue to use his experience to contribute to its work but only outside of any areas identified as potential conflicts.

Curtin has been a commissioner since 2001 but his promotion to deputy chairman in July last year by the then commerce minister Lianne Dalziel raised eyebrows because of his connection to failed financial advisory group Vestar.

Curtin was chairman of Vestar's investment committee until the majority of its business was transferred to Christchurch businessman George Gould in June becoming Gould Wealth

Management.

Since then Vestar has been placed into liquidation while last week Gould Wealth Management merged with the AXA-owned Spicers Wealth Management.

But the former investment committee, which included Curtin, Vestar founder Kelvin Syms and director Simon Purvis, has been heavily criticised and faces potential legal action by investors for ploughing millions into finance companies which have hit trouble.

Many investors were put into the same six finance companies - Bridgecorp, Capital+Merchant, OPI Pacific Finance, MFS Boston, St Laurence and Property Finance.

Bridgecorp has since gone into receivership and liquidation and five of its directors are facing criminal proceedings while Capital & Merchant is also in receivership.

OPI Pacific Finance and MFS Boston were owned by the same company that owned Vestar and St Laurence is in a moratorium. Investors raised concerns about a conflict of interest with the minister last year because the Commerce Commission could be asked to investigate Vestar over breaches of the Fair Trading Act as part of any legal action.

Yesterday the Commerce Commission said it would not comment on Curtin's decision but planned to release the details of the investigation carried out by Queens Counsel Hugh Rennie as soon as possible.

Curtin did not return messages left at his home address.