New Zealand commerce watchdog commissioner taken to court

Wellington - New Zealand's watchdog Commerce Commission announced Tuesday that one of its own commissioners is being taken to court over past actions as a private investment adviser.

A brief statement said court proceedings had been filed against Commissioner Donal Curtin relating to his private role as a consultant to Vestar Financial Services, a former financial advisory group now in liquidation, which managed up to 1 billion New Zealand dollars (700 million US dollars) worth of people's money at its height.

Vestar invested in a number of finance companies which collapsed in the last two years after being unable to pay interest or return funds loaned by investors.

Irish-born Curtin, who has been a commissioner since November 2002, was already subject to legal action by unhappy investors in another failed company whose investment committee he headed.

The Commerce Commission said that until all the proceedings were resolved, Curtin had been allocated to "tasks that do not involve him in decision-making related to enforcement actions under either the Fair Trading Act or Credit Contracts and Consumer Finance Act."

The commission declined further comment but said, "Other steps are being taken to ensure that conflicts of interest will not arise."

The Commerce Commission enforces laws that promote competition in New Zealand markets and prohibits misleading and deceptive conduct by traders.

Curtin was formerly chief economist of the Bank of New Zealand and an adviser to parliament's finance and expenditure select committee.

DPA