Petricevic and Roest banned

FAIRFAX

BANNED: Bridgecorp managing director Rod Petricevic has been banned from being a manager or director for five years, along with finance director Rob Roest.

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The bosses of collapsed Bridgecorp have been barred from directing or managing a company in this country for five years.

The ban, imposed by the Deputy Registrar of Companies Peter Barker, is for the maximum term allowed under the law.

Barker said he was not satisfied that the way Bridgecorp managing director Rod Petricevic and finance director Rob Roest had managed the affairs of Bridgecorp "was not at least partly responsible for the failure of those companies".

Bridgecorp collapsed in July 2007 owing investors about $460 million. To date those investors have seen none of that money, and the latest estimate from the receivers is they might get less than 10 cents in the dollar back.

Petricevic and Roest are now facing criminal charges.

Barker said that the Ministry of Economic Development’s National Enforcement Unit had provided reports that alleged mismanagement including: misleading information contained in the prospectus; defaults of the payment of principal and interest; misleading information provided to the Trustee; and, in the case of Mr Petricevic, transactions involving personal interest.

Barker said he found the failings of Petricevic and Mr Roest to be "serious and fundamental" with such a depth that any one of the matters alone would have been enough to prohibit them from acting as company managers or directors.

Barker determined that this matter was separate and distinct from the criminal charges that Petricevic and Roest were also facing, so there was no reason for him to delay his prohibition decisions.

The ban prevents those concerned from acting as directors or promoters of a company, or being concerned in, or taking part, whether directly or indirectly, in the management of a company.

Failure to comply with a "notice of prohibition" is an offence and persons that carries a penalty of up to five years imprisonment or a fine not exceeding $200,000.

- By DAVID HARGREAVES, Business Day