Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

OIO releases Motukawaiti (Step) Island findings

OIO releases Motukawaiti (Step) Island findings

The Overseas Investment Office (OIO) today announced that it is not able to take action over the purchase of Motukawaiti Island – also known as Step Island – by New Zealand company St Morris NZ Limited.

“While the investigation found evidence pointing to a possible breach of the Overseas Investment Act, there is not enough to prove this beyond reasonable doubt,” OIO Manager Annelies McClure says.

“This means we cannot meet the threshold in the Solicitor-General’s Prosecution Guidelines and, so, we cannot take action.”

The OIO began its investigation after learning that St Morris had used funds borrowed from an overseas person – Chinese businessman Jun Zhang – to buy the island.

The investigation was to determine whether St Morris was a front for Mr Zhang – to get around the need for consent – or whether Mr Zhang was just a lender.

It initially involved examining the purchase, the loan from Mr Zhang to St Morris, and a complex finder’s fee transaction – however it also turned up a number of other property transactions.

“The OIO had to investigate these other transactions to see what effect – if any – they had on the island’s purchase and look into the people involved, some of whom are no longer in New Zealand.

“After weighing up all the evidence, our final conclusion is that there is not enough to prosecute for a breach of the Act in this case,” Ms McClure says.
View the Report on the LINZ website.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

Timeline

DateEvent
Feb-2010First enquiry on behalf of Mr Zhang about investing in New Zealand
Apr-2010Mr Zhang visits New Zealand
Jul-2010Wenning Han (owner of St Morris) signs Sale and purchase agreements for Step Island
Aug-2010Purchase of Step Island settled
Nov-2010OIO begins investigation
Mar-2013St Morris/Mr Han defaults on loans to Mr Zhang
Aug-2013Island transferred to Mr Zhang in settlement of loan obligations (no consent required as Mr Zhang is no longer an overseas person)
Mar-Oct-2014OIO interviews key individuals, including Mr Han and Mr Zhang
Jul-2014Final evidence received
2015Decision made not to take action

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The US Opposition To Mortgage Interest Deductibility For Landlords


Should landlords be able to deduct the interest on the loans they take out to bankroll their property speculation? The US Senate Budget Committee and Bloomberg News don't think this is a good idea, for reasons set out below. Regardless, our coalition government has been burning through a ton of political capital by giving landlords a huge $2.9 billion tax break via interest deductibility, while still preaching the need for austerity to the disabled, and to everyone else...
More


 
 

Government: Concerns Conveyed To China Over Cyber Activity
Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government. “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity... More

ALSO:


Government: GDP Decline Reinforces Government’s Fiscal Plan

Declining GDP for the December quarter reinforces the importance of restoring fiscal discipline to public spending and driving more economic growth, Finance Minister Nicola Willis says... More

ALSO:


Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.