Accountants guilty

Hobbs and Rose struck off for poor conduct

Waikato accountants Shane Rose and Gary Hobbs have been struck off the Institute of Chartered Accountants for bringing the profession into disrepute.

The pair, who owned Hobbs Rose Ltd in Te Awamutu, were found guilty of conduct unbecoming an accountant.

A decision from the institute said they managed their practice in such a manner they were unable to pay creditors in reasonable time. It also said they conducted their affairs in in a way that caused detriment to their clients and other business interests and brought the institute into disrepute.

Hamilton lawyer David Nielsen applied last month to put the accountants into liquidation over a debt owed to his firm, Neilsen Law. Hobbs Rose settled that debt, but Oparau farmer Neil Scott then took liquidation proceedings.

The Waikato Times understands he is owed $155,000.

The Waikato Times also understands Auckland-based Pipers Patent and Trademark Attorneys has applied to put Mr Hobbs into bankruptcy over a debt of $183,561.

Mr Rose was the director of Hawke's Bay-based Waipa Water, which was put into liquidation in November 2008 after mounting up a $3.48 million debt with Italian packaging machine supplier OCME.

Liquidator David Petterson, in his most recent report, said he had identified issues of "serious concern" in relation to Waipa Water.

He said he could not say when the liquidation would be complete because investigations were ongoing.

In his first report he noted issues including: the fact the land and buildings are subject to mortgage; the water consent was transferred by the director to a company (WRL Holdings Ltd) in which he has ostensible control, that company being the majority shareholder of Waipa Water Ltd; leasehold improvements have been made to the building not owned by the company; machinery is not in the possession of the company and payment remains to be completed.

In addition, a Ford Falcon vehicle has been treated as a personal asset of Mr Rose, but is subject to hire purchase.

The finance company has agreed to transfer the debt back to the director at the value of the vehicle, as the vehicle and the debt are of an approximate equal value.

Mr Rose is listed as a ceased director of Cambridge Accountants Ltd, establish in March this year.

His wife, Tina Rose-Dutton, is listed as the director of the company.

Attempts to contact Mr Rose were unsuccessful.

- © Fairfax NZ News