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Third Hong Kong arrest over Crafar farms

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Thu, 19 Jan 2012 2:33p.m.

Natural Dairy's bid to acquire 16 Crafar farms was rejected in 2010

Natural Dairy's bid to acquire 16 Crafar farms was rejected in 2010

A third person linked to a Hong Kong company's attempt to purchase the Crafar farms is facing charges overseas.

Hong Kong's Independent Commission Against Corruption (ICAC) has charged Yee Wenjye (also known as Eric Yee), a 40-year-old Singaporean national and New Zealand resident, with conspiracy to defraud Hong Kong-listed company Natural Dairy (NZ) Holdings.

Natural Dairy's bid to acquire 16 Crafar farms was rejected in 2010.

Yee is accused of conspiring to defraud Natural Dairy, its directors and shareholders by falsely representing that 22 farms owned by the CraFarms Group had made a profit of $18.5 million in the year ending May 2009, when the company had actually made a significant loss of about $30 million.

In October, the ICAC charged Auckland bankrupt May Hao, also known as May Wang, and Auckland-based businessman Jack Chen, also known as Chen Keen, with conspiring to bribe officials and dealing with property that represents proceeds of an indictable offence.

The anti-corruption unit alleges Hao and Chen conspired between May 2009 and December 2010 to offer two Auckland properties and more than $HK73 million ($NZ11.7 million) to Chen as payment for arranging for Natural Dairy to acquire UBNZ Asset Holdings, which was owned by Hao.

It is also alleged that between December 2009 and December 2010 they dealt with the sales proceeds to UBNZ Asset Holdings, including two convertible notes worth $NZ150 million, which represented proceeds of an indictable offence.

Yee is alleged to have conspired with Hao and Chen in misrepresenting the financial strength of the Crafar farms.

Hao and Chen reappeared in court on Thursday. All three will reappear again in April.

The charges follow a joint investigation into the company by the ICAC and New Zealand's Serious Fraud Office, which began in September 2010 when New Zealand's Overseas Investment Office was assessing Natural Dairy's bid for the Crafar farms.

NZN

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Comments

26 Jan 2012 12:15a.m.

Morgan wrote:

this is the auction, if you dont have money, just leave and keep quiet. dont dishonor the international free trade deal for just 3M dollars

23 Jan 2012 08:57p.m.

Les wrote:

What is wrong with Fontera do they not realise the Dairy land is there business why cant they not buy these farms and finance young farmers on to the farms???

23 Jan 2012 07:57p.m.

Ian wrote:

I'm a little guy neighbouring one of the UBNZ owned farms in Palmerston North that the OIO did not approve. We have been in dispute over bridge repairs on the 3 way shared driveway for over a year, as it was unsafe it has been repaired for a cost of $48,000, UBNZ refuse to pay their fare share so we are forced to take legal action, an additional cost that a little guy can ill afford and doubt that we will ever see any return. Based on our dealings with this group we stongly recommend the Crafar Farms remain in NZ ownership. I woulld not like to see other small players being bullied out of their business.

23 Jan 2012 07:31p.m.

Peter Simpson wrote:

Why did our fathers, grandfathers, and great grandfathers go to war in the 20th century? To give their families, our families the right and the freedom to live in this beautiful country. So why in the world would you want to sell land that our families wish to purchase. It would be one of the sadist days in New Zealand history if the Crafer farms were to be sold to Chinese or any other nationality. Great to see the kiwi farmers going for their rights to purchase the farms on your show tonight.