Failed New Zealand developer moves on to Ghana

A bankrupt Christchurch developer whose companies chalked up $30 million to $50m of debts in New Zealand is trying to set up a huge development in Ghana.

Neil Dougan, who left the country in mid-2007 to start a new life in London, is now trying to raise finance for the Ghana project, inquiries by The Press show.

Investors in Christchurch ploughed several million dollars into Dougan's projects in Hanmer and Kaikoura and have lost their money. The projects included a redeveloped Braemar Lodge in Hanmer Springs that was going to be the South Island version of Huka Falls, and Te Kaikoura Lodge in Kaikoura.

Dougan has since got into difficulties again, this time while project-managing the renovation of a house in the plush London district of Knightsbridge for film producer Claude Giroux, 81.

Giroux told The Press he left Dougan to manage the London project while he continued to reside in New York.

When Giroux visited London in April/May to inspect progress on the building, he was astounded to find the house a shell and almost destroyed.

"I lost over US$540,000 [NZ$790,000]," Giroux told The Press.

"He kept sending me progress reports of the fictitious work being done. He hired contractors but never paid them, telling them that he was expecting the owner to send funds and then that they would then get paid. He would send me their bills as proof that the work was progressing," Giroux said.

"He presents the image of the martyr. That he went bankrupt in New Zealand because his bank went bankrupt.

"He gets young students in architecture to work for him for no or little money, and does not even pay them that pittance at the end of the month," he said.

"When I finally came to London and saw the destroyed state of my house I was shocked. I was besieged by contractors and ex-employees who were clamouring for money."

Giroux found Dougan hard to track down but located him in Ghana, and finally met him to discuss the project.

"Neil then showed me his grandiose plans for a huge development in Ghana. It included apartment houses, hotels, a casino, and he mentioned that they had acquired land in the delta and that he was expecting funding in the next few days and that we would all be OK."

Giroux says he let the matter go after seeing a lawyer and feeling too old to pursue Dougan.

Fourth-year architecture student Sean McCormick said he had worked for Dougan in London from February to the end of May for entities called Design By Valentine and Best Apartments, and was still owed about six weeks wages.

"He is an amazing salesman, but he spins so many lies that I think he believes his own stories," McCormick said.

Dougan had had to leave premises he rented in Colliers Wood near Wimbledon because he had not paid his rent, McCormick said.

Ad Feedback He said he heard all about the Ghana project and knew of one architect who was holding on to plans for the project because he had not been paid.

Dougan did not respond to emails and was unavailable when called on his cellphone.

The Registrar of Companies has conducted an investigation into Dougan's affairs but could tell The Press yesterday only that "inquiries have confirmed that Neil Dougan is overseas and the registrar [of companies] does not have any international jurisdiction".