The banks, who tried to rip us off to the tune of $2.6 billion, have agreed to pay us $2.2 billion.
I don’t get it. We’ve spent tens of millions so far on court cases to get our money. We’ve won every case. The judgments have been damning of the banks. So, why did the IRD agree to settle for 80% of what the banks owe us? Why are we giving the banks a $400 million gift? If we had run through the rest of the court process, we would have got more than $2.6 billion when you add penalty tax and court costs.
I have a sinking feeling that this is a political decision to get the cash in hand now for National’s objectives. There can be no doubt that a decision of such magnitude was approved by ministers.
Bill English, Peter Dunne, and John Key are going to have to answer for this $400 million dollar Christmas gift to the banks.