Directors face charges in Qantas NZ case

Tasman Pacific, operator of the Qantas New Zealand franchise, collapsed in April

By staff reporter

AUCKLAND, New Zealand (CNN) -- Seven past and present directors of failed New Zealand airline operator Tasman Pacific say they will vigorously defend charges of failing to file financial accounts.

Tasman Pacific Airlines, which operated the Qantas New Zealand franchise, collapsed and was placed in receivership on April 21 with debts of about $42 million ($NZ100 million).

The seven have been charged by New Zealand's Companies Office on five counts each, and face total fines of $210,000 (NZ$500,000) each.

In a statement reported by the New Zealand Press Association, the directors said they were aware of the proceedings against them.

They said the charges were some of the first under new legislation and had not been tested in New Zealand courts.

Hearing scheduled for July 25

The case is scheduled for hearing in the Auckland District Court on July 25.

The seven, who include prominent Australian businessman Ken Cowley, a former head of Australian operations for the international media giant, News Corp., said the legislation raised technical issues.

But the national enforcement manager for the Registrar of Companies, Shane Keohane, said Monday the legislation was clear.

"There is no such thing as a technical breach; the law is the law," he told New Zealand's Evening Post newspaper.

The charges relate to Tasman Pacific Airlines and its holding company, Zazu Ltd. They allege failure to lodge June 2000 accounts by the due date of December 31, 2000.

According to Keohane, the accounts had still not been filed as of June 15.

No ownership involvement

Apart from Cowley, those charged are former Qantas New Zealand chief executive Kevin Doddrell and prominent businessman Trevor Farmer, and David Skeggs, Fred Watson, David Belcher and alternate director Rob Campbell.

Cowley was chairman of Zazu, but stepped down a few weeks before the airline operator's collapse.

Australian airline Qantas had no ownership involvement in Tasman Pacific, but entered the New Zealand domestic market in late April after its brand was threatened by the collapse of the franchise.

It now operates on the main trunk routes between Auckland, Wellington and Christchurch.