The Race to Rebuild

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The Race to Rebuild INVESTIGATE THE KING’S COLLEGE STORY NEW ZEALAND’S BEST NEWS MAGAZINE 17 Year old David Gaynor had it all. What happened? A WOLF AT THE DOOR Greywolf Mining’s Ted Lancaster has a dodgy past – we have the exclusive story The Race Is McCaw Worth It? to Rebuild Chris Forster analyses the NZRFU How Japan Is Doing It contracts deals July 2011, $8.60 CURRENT AFFAIRS, TOYS, CARS, FRANKLY-EXPRESSED OPINIONS & MORE Amazing Asia Special Phuket8 NIGHTS FROM $1,325* Saigon4 NIGHTS FROM $1,555* Chiang Mai3 NIGHTS FROM $1,265* Bangkok4 NIGHTS FROM $1,245* Fly THAI to the world, smooth as silk. To celebrate our AIRFARE ONLY: Krabi $1,219 51st Anniversary, Bangkok $1,204 Saigon $1,379 we are releasing Phuket $1,219 Hanoi $1,369 these very special Chiang Mai $1,219 Phnom Penh $1,389 www.thaiairways.com Headline price shown is for return travel from Auckland to the selected destinations listed above, in economy air fares: Koh Samui $1,229 Vientiane $1,369 class, in low season. All prices shown are valid for sales until 28 June 2011 unless sold out prior and are valid for outbound travel between 10 May 2011 and 30 June 2011, and have a maximum validity of 1 month. After ticket has been issued, they are NON-REFUNDABLE, AND DATE CHANGES ARE NOT PERMITTED. Fares are correct as Other fares within Thailand, Vietnam, Laos and Cambodia are available on request. at 09 May 2011, but may fluctuate if surcharges, fees, taxes or currency change. Other conditions apply – ask your bonded travel agent for more details. * Prices shown are per person based on twin share accommodation. publiceye_3520_InvestigateDPS Amazing Asia Special Phuket8 NIGHTS FROM $1,325* Saigon4 NIGHTS FROM $1,555* Chiang Mai3 NIGHTS FROM $1,265* Bangkok4 NIGHTS FROM $1,245* Fly THAI to the world, smooth as silk. To celebrate our AIRFARE ONLY: Krabi $1,219 51st Anniversary, Bangkok $1,204 Saigon $1,379 we are releasing Phuket $1,219 Hanoi $1,369 these very special Chiang Mai $1,219 Phnom Penh $1,389 www.thaiairways.com Headline price shown is for return travel from Auckland to the selected destinations listed above, in economy air fares: Koh Samui $1,229 Vientiane $1,369 class, in low season. All prices shown are valid for sales until 28 June 2011 unless sold out prior and are valid for outbound travel between 10 May 2011 and 30 June 2011, and have a maximum validity of 1 month. After ticket has been issued, they are NON-REFUNDABLE, AND DATE CHANGES ARE NOT PERMITTED. Fares are correct as Other fares within Thailand, Vietnam, Laos and Cambodia are available on request. at 09 May 2011, but may fluctuate if surcharges, fees, taxes or currency change. Other conditions apply – ask your bonded travel agent for more details. * Prices shown are per person based on twin share accommodation. publiceye_3520_InvestigateDPS www.nikon.co.nz Untitled-1 1 25/01/2011 3:24:38 p.m. HIS/contents July 2011 Issue 126 www.hismagazine.tv cover 14 KINGS HIGH The death of 17 year old Kings College student David Gaynor on the night of the Ball has again thrust teen drink and drug use into the spotlight 20 WOLF CORNERED Ted Lancaster likes to be seen with the powerful, but he’s a convict who almost pulled off NZ’s biggest minerals heist 26 JAPAN NOW While Christchurch is still demolishing, Japan is gradually rebuilding after its tsunami. We have the before and after photos 40 GETTING CARTER Sports editor Chris Forster examines the logic behind the Carter and McCaw NZRFU contracts www.nikon.co.nz 14 Untitled-1 1 25/01/2011 3:24:38 p.m. HIS/contents 6 opinion 6 /EDITOR Speaks for itself, really 8 /COMMUNIQUES Your say 10 /EYES RIGHT Richard Prosser 12 /STEYNPOST Mark Steyn 35 action 36 /DRIVE The new Fiat Abarth 40 /SPORT Chris Forster on McCaw 36 42 /INVEST Peter Hensley on changes to financial advice rules 40 45 gadgets 48 The latest Blackberry Touch 49 The Mall 50 Tech: Have you scanned a QR yet? 52 Online with Chillisoft 53 mindfuel 56 /BOOKCASE Michael Morrissey’s winter picks 58 /BOOKCASE Rob Lowe’s new book 60 /CONSIDERTHIS Amy Brooke on tolerance 62 /THEQUESTION Was Jesus a pacifist? 00 over in HERS 58 12 /A NEW ICE AGE? Scientists called a special news conference to announce the Sun is powering down...what does it mean for us 26 /WHO DISCOVERED NZ? Was NZ the setting for one of Sinbad’s voyages, or did the Portuguese really discover NZ? 50 PURE We’re sure you’d rather drive it than just look at it. Test drive at your dealer today. FROM $46,990+ON ROAD COSTS New Zealand standard specifications may vary to that shown. 0800 639 542 www.kia.co.nz WORK2454 Optima Just Look At It HIS FP.indd 1 3/06/11 9:52 AM I have a nagging feeling that the old boys’ network is involved somewhere, and ‘legality’ depends on who you know, not what you did Equality before the Law? o the Serious Fraud Office is All of this was well hidden. Disguised in prosecuting elderly businessman transaction documents no one was supposed S Allan Hubbard on more than 50 to find, let alone be able to link up to the ‘fraud’ charges associated with the way original Magnum deposit documents. he ran his investment companies? We’ve So we had evidence of a $2 million fraud purposely stayed away from investigating using fake Cook Islands tax certificates, we the Hubbard story until the dust settles, but had evidence the people behind the transac- news of charges finally being laid reminded tions had gone to great lengths to hide the me of another big case: The Winebox. intricate and illegal details in a string of Back in the 1990s, a box-load of tax haven apparently separate transactions, and we documents dropped in the laps of myself and had evidence that the company doing this MP Winston Peters. As I began to investigate was the pet project and piggy bank of some the transactions I found some that were so of New Zealand’s top business leaders. carefully constructed that only a handful of The Serious Fraud Office, which reck- people knew how the deals really worked. ons it has found deliberate fraud in the One key transaction was the Magnum Allan Hubbard case, swore and declared in deal. According to one set of documents, the mid-1990s that it could find “no con- Magnum deposited $34 million with a tax scious dishonesty” in any of the Winebox haven bank named European Pacific, in the transactions. expectation it would be paid $4 million in Even if the deals were fraudulent, said interest a year later. the SFO, unless it could be proved that the Now, European Pacific was secretly owned participants “knew” they were doing wrong, by merchant bankers Fay Richwhite & Co, it would be a waste of taxpayers’ money Brierley Investments and the BNZ, but as the prosecuting them. They refused, point blank, Magnum deal stood they were going to lose to prosecute. $2 million on the transaction. Just to make In 2010, the NZ Government stormed this point crystal clear: the official Magnum into Allan Hubbard’s businesses, stripped deal documents described a deal where the them and began flogging them off to bank was guaranteed to lose $2 million, and people who arguably stood to benefit finan- knew it when they approved the deposit. cially from Hubbard’s downfall. People editor What kind of bank does a deal like that? with conflicts of interest were involved But there was a secret trapdoor in the deal. in the process, and now the force of the An entirely separate set of documents was State is directed at branding Hubbard a drawn up which manufactured two fake Cook criminal. Maybe he is. Maybe he isn’t. But Islands tax certificates worth $2 million. Euro- I have a nagging feeling that the old boys’ pean Pacific Bank could use those tax certifi- network is involved somewhere, and ‘legal- cates to get a $2 million refund from the New ity’ depends on who you know, not what Zealand IRD – courtesy of the taxpayer. you did. 6 HISMAGAZINE.TV July 2011 Comfort is... simply another name for Stressless® Words like wellbeing, weightlessness and total relaxation come to mind the moment you sit down in a Stressless® recliner. The natural soft leather and cushion ooze cosy comfort. The gentle swing is controlled with effortless ease. And the smoothness of the reclining function reveals the full potential of the superior technology - adding the right body support in any position. Stated succinctly, the comfort offered by a Stressless® recliner from Norway is the key to a more comfortable you. Take our word ® for it and try one at your local Stressless studio soon. Because feeling is believing. STRESSLESS® Kensington Equality before the Law? 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