ANZ may have given the wife of former CEO David Hisc a $ 4.1 million discount when he sold her the house, a new estimate suggests.
In June, Stuff revealed that the bank had paid $ 7.55 million for the St Heliers home in early 2011, for the life of Hisco and his family.
It was sold to Hisc's wife, Deborah Walsh, for $ 6.9 million in July 2017.
KiwiSaver Simplicity Provider has requested an appraisal of the value of the property by a home strategist.
* ANZ NZ employees' trust in senior management was tested after the Hisc scandal
* ANZ elastic standards on top
* Simplicity could initiate legal proceedings because of the secrecy of valuing the ownership of ANZ
* ANZ needs a new broom for the boss, not a sequel from the dark days of banking
* ANZ will provide FMA with information on related party ownership agreements
* ANZ's $ 100,000 maintenance bill for the former CEO's luxury home
The appraisal report estimates the home was worth $ 11 million at the time of the sale.
Simplicity founder Sam Stubbs said the bank needed to explain the transaction.
"KiwiSaver members have invested over $ 100 million in ANZ and have used their money for this transaction. These are shareholder funds. This issue goes directly into ANZ's behavior and culture."
He said the bank should make its own assessment of the property.
The luxurious, 700 square meter house overlooking the ocean, on a 2454 m2 private driveway leading from the main St Heliers Bay Rd, includes a heated swimming pool, tennis court and six bedrooms.
The estimate says it has a great entrance "with an adjoining powder room," which leads into a festive lounge with an open hearth, a connected French door to the festive dining room.
On the lower level there are two stairs, where there are five bedrooms, a gym, a recreation room with a bar, one of the houses three studios, three bathrooms, a sauna, a spa and a guest kitchen.
A salesman who worked on the home's renovation and asked not to be identified said there was a major renovation and remodeling for the Hisco family.
He said the most important of the renovations that took place while he was working on the home was installing an air-conditioning system.
He said the talk at the job site cost him to set up "several hundred thousand. That's a pretty big deal."
Hisco left the bank after internally reviewing his expenses for car drivers and storing wine.
Valuers QV put the value of the property’s equity in 2017 (including an estimated land value of $ 7.2 million for a 2454 m2 parcel) at $ 10.75 million.
House prices in the wider St Heliers area roughly doubled between 2011 and 2017, according to real estate agencies Barfoot and Thompson.
Title transfer documents show ownership of 269 St Heliers Bay Rd was transferred from Arawata Assets Limited, a wholly owned subsidiary of ANZ NZ, to Deborah Veronica Walsh.
The maintenance of Auckland's luxurious home by former ANZ chief in New Zealand David Hisc has topped $ 100,000 a year, sources said Things.
Antonia Watson, the current acting CEO of ANZ in New Zealand, was one of three directors of Arawat Assets at the time of the 2017 sale.
Watson told Hisco that it "did not meet standards and expectations."
The other Arawat directors in 2017 were Annis Gail O & # 39; Brien, who remains senior director at ANZ Group and is responsible for the statutory and regulatory reporting requirements in New Zealand. The third director at the time was Felicity Evans, then managing director of human resources at ANZ NZ, now retired.
ANZ spokesman Stefan Herrick said the house was sold to Walsh in June based on market estimates at the time.
He said the bank bought the house when Hisco arrived in New Zealand.
"The housing allowance David received as part of his emigration arrangements – which is published annually – was offset by the market rent David had to pay ANZ for the house."
It earned a total compensation of $ 3.12 million in 2018, down from $ 3.4 million a year earlier. His non-cash benefits averaged $ 441,116, totaling $ 3.35 million over his eight full financial years at ANZ's top job in New Zealand.
Stuff reported in June that the whistleblower tried to flag problems with Hisc's spending in 2014.
The Financial Markets Authority has announced that it will examine the agreement. It seems that it should have been published in the bank's annual report as a related party transaction.
"Our research is progressing. There is a process that we need to follow and we do not tend to set timelines on these things. We will update you when we reach the outcome," said Andrew Park spokesman.
Jilnaught Wong, a professor of accounting at the University of Auckland, said the sale of the home seemed "clear" as a related party transaction and needed to be reported as such.
Criminal and civil penalties are possible if its found ANZ directors, including Key, made false or misleading statements to the Reserve Bank.
The ANZ was also ordered to receive two independent reviews, after the Reserve Bank asked for a guarantee that the bank "operated in a prudent manner." A spokesman said these were ongoing. "We are unable to comment on the details of the report at this stage. However, a summary of each report will be published after it has been received by the Reserve Bank."
The bank has been under intense pressure for months, with fierce backlash from the Reserve Bank and urging Key and Hisc to leave or be forced to freedom.