Qantas NZ directors to 'vigorously' defend allegations

Seven past and present directors of collapsed airline Qantas New Zealand say they will vigorously defend charges that they have failed to file financial accounts.

The seven - former Qantas New Zealand chief executive Kevin Doddrell, Trevor Farmer, Ken Cowley, David Skeggs, Fred Watson, David Belcher and alternate director Rob Campbell - each face five charges laid by the Companies Office in the Auckland District Court.

The charges relate to the failure of Tasman Pacific (alias Qantas New Zealand) and its sole shareholder, Zazu, to file their June 2000 accounts on time. Each charge carries a potential penalty of up to $100,000, and the case is due to be heard on July 25.



The charges follow the collapse in April of Qantas New Zealand, leaving more than 1000 staff without jobs and creditors owed up to $100 million.

In a written statement, the directors said the charges raised the technical issue of the directors' alleged failure to file accounts with the Registrar of Companies. However, they said this requirement applied only to overseas-held companies, and Qantas NZ was New Zealand-owned.

The charges were among the first under the Financial Reporting Act 1993, which was designed to ensure that companies kept up-to-date financial records.

The statement said Qantas NZ "kept sophisticated and current accounting systems at all times," and added that the seven men were experienced company directors who took proper professional advice.

Registrar of Companies national enforcement manager Shane Keohane said the legislation was not restricted to overseas-held companies. The accounts had still not been filed when he last checked, on Friday evening.

Lawyer Chris Darlow, who represents all the directors except Farmer and Campbell, said his clients would defend the charges vigorously.

"This is not clear-cut at all. We've got all sorts of defences available for these charges."

The directors were concerned about the case.

"They are people of high public profile and they have reputations. This sort of thing is not welcome."

The Engineering, Printing and Manufacturing Union, which represents most of the airline's workers, yesterday welcomed news that the issue was heading to court.

Spokesman Andrew Little said workers would be pleased that the directors were being called to account in some way.

"The next thing is for the directors to front up to the employees and the creditors."

Mr Little said that if faith in New Zealand's business community was to be restored, the country must develop commercial laws which were rigorous and enforced.

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