Jock Hobbs offers to resign as NZRU chair

Jock Hobbs

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Former All Black Jock Hobbs this week volunteered to resign as chairman of the New Zealand Rugby Union.

However, Hobbs' boardroom colleagues rejected his offer to step aside in what amounted to a unanimous endorsement of his leadership.

The dramatic development happened during Thursday's NZRU board meeting in Wellington.

It followed Strategic Finance going into receivership on March 12 owing $417 million to 13,000 investors.

It was the second biggest finance company receivership after Bridgecorp collapsed in July 2007 owing $458.7 million to 18,000 investors.

Hobbs, a Strategic director, former chief executive and shareholder, is regarded as a pillar of the community and had his offer to step aside been accepted it would have been a major blow for the game.

He is the chairman of the joint-owned crown and NZRU company, Rugby New Zealand 2011, created to oversee the running of the Rugby World Cup in New Zealand next year. Earlier this month, he wrote to both boards (the NZRU and RNZ 2011) briefing them on Strategic's position and asking his fellow directors to "contact him in person" if they had any concerns.

He opened Thursday's NZRU board meeting with a further oral briefing and then offered to leave the room to allow his fellow directors to talk privately.

They swiftly rebuffed his offer and passed what was effectively an unanimous vote of confidence in his leadership.

The RNZ 2011 board's next meeting is in April.

Hobbs confirmed he would make the same offer to them.

However, they too are expected to rebuff his offer.

A handful have already replied to his letter and conveyed their support.

Hobbs is also understood to have offered his resignation to the world cup minister, Murray McCully.

McCully is believed to have rebuffed that offer too.

During a brief interview yesterday Hobbs confirmed all of the facts above were correct and told the Star-Times his offer to step aside as the boss of New Zealand rugby was a matter of "principle".

The former All Blacks skipper said: "I was honour-bound to do so. If you don't have confidence of the board then you should go immediately."

"That's my view and what I offered to do."

About 50 New Zealand finance companies, big and small, have collapsed as a result of the global credit crunch.

Hobbs sounded understandably upset about the fate of Strategic.

"My reputation for honesty and integrity is something that is very important to me," he said. "I hope my actions have helped preserve that."

The Star-Times understands influential members of the rugby, legal and government sectors have privately offered Hobbs their support.

The fate of Strategic now rests in the hands of the receivers who are investigating its business dealings.

- © Fairfax NZ News