I have been struggling to understand how the board of the Kiwisaver provider Huljich Wealth Management could claim to have been unaware of majority shareholder Peter Huljich's cash injections.
The issue is an important one, because the cash injections may have led investors to believe the Kiwisaver provider was making spectacular gains from its investments, when in fact the returns may have been more modest.
I am not an accountant, and no doubt it is possible for accountancy sleight-of-hand to disguise the payments, although I'm not sure whether that is what in fact transpired.
But you would have hoped that another director might have spotted it. Whatever I may think of Don Brash's politics, I would expect him to be a good accountant.
So why didn't Brash pick up this anomaly?
Whatever the truth is, here is another shining example of questionable behaviour in our managed funds sector. If I had money to invest in managed funds (thankfully the burden of a mortgage and ever-demanding children makes that prospect a fantasy), I'd be steering towards one of the banks or larger institutions, such as AMP. At least you know they have substance and aren't subject to the whims of one man.
Update: It all makes sense now. Don Brash’s shareholding entity in Huljich Limited, the parent company of Huljich Wealth Management, is called Troika Family Trust Nominees Limited. “Troika” is Russian for a collection of three. But it has only two directors, who hold the one share jointly. He can’t count!