Chinese-link island sale may be illegal
A STUNNING island, complete with an exclusive $ 2500- a- night luxury lodge, may have been bought illegally by Chinese-linked business interests.
But two years after the $12 million purchase of Motukawaiti Island, in Northland’s Cavalli group, the Overseas Investment Office is still considering whether the deal was legal.
Records show the 38- hectare island was bought in 2010 by St Morris Ltd, owned by Auckland’s Weening Han, without any application for consent.
Office manager Annelies McClure said an investigation into whether the transaction complied with the Overseas Investment Act, started in 2011 and was continuing.
‘‘This is a very complex investigation involving a number of individuals and organisations. It is not possible to place a timeframe on it because we are continuing to seek information and documentation. We are unable to provide further detail because it could impede the investigation.’’
Labour’s David Parker said the probe was taking too long. ‘‘We seem to have an incapacity under the current government – whether it is the Government Communications Security Bureau or the OIO – to answer the simple question of whether someone is a resident.’’
McClure said the investigation was wider than just residency status, but Parker said even if it was complex, it should have been resolved by now. ‘‘Here we are, two years later, and they have done nothing. This is a beautiful part of New Zealand. It ought to be able to be purchased by successful New Zealanders. I think it’s too easy to buy these things from overseas anyway, in a way that closes New Zealanders out.’’
The Beaches Zone website lists the island as one of the world’s 10 most beautiful private islands, calling it a ‘‘lavish and luxurious residence with swimming pool, guest cabins, extensive wine cellar and modern spa facilities’’.
It is understood the beachfront Cavalli Retreat and Spa on the island, which opened in 2006, offers three rooms and can take up to six people.
In answer to written parliamentary questions in April, Land Information Minister Maurice Williamson said the investment office had a fulltime equivalent staff member investigating the purchase, but he declined to release any further information, saying it could prejudice the maintenance of law ‘‘including the prevention, investigation and detection of offences and the right to a fair trial’’.
Han did not comment.
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