By Tony Field
Chinese customs officials have arrested a man they claim is at the center of a multi-million dollar import fraud involving New Zealand kiwifruit.
Officials claim the man falsified documents to avoid more than $10 million in tariffs.
Zespri, which markets kiwifruit to China and elsewhere says it had no idea the importer was manipulating the system for his own benefit.
Footage of arrest in the Zespri kiwifruit fraud was screened by China's state TV network to a potential audience of hundreds of millions. It's publicity New Zealand growers could have done without.
The man's not been charged but it's alleged he ran two sets of accounts, one real and one fake, which helped him evade import duties.
Zespri says it had no idea what the man was doing.
“We are not close to the investigation ourselves, this is an investigation and we have little knowledge of the detail of the case,” says CEO Lane Jager.
The man was importing around 1 million trays of gold kiwifruit a year into China, a fruit increasingly sought after by the country’s growing middle class and one which can fetch four times the price of the green variety.
The consequences of the accused man's actions could be serious.
Chinese media are reporting Shanghai customs officials have seized 30,000 tonnes of kiwfruit, but Zespri says that's not the case.
“To the best of our knowledge Chinese customs have absolutely not disrupted the business at all, and no fruit has been seized,” says Jager.
Even more important than seizure is the fate of the growers here in New Zealand.
A spokesman for the growers says he's confident they will be paid. There's been no interruption to deliveries of the fruit into China, and no reason for growers to worry.
3 News