In September 2009 Natural Dairy (NZ) Holdings Limited (Natural Dairy), a company listed on the Hong Kong Stock Exchange, made an announcement giving details of its plan to purchase the New Zealand farm assets of the Crafar family. 

The plan involved an intermediary in New Zealand, a group of companies called UBNZ, purchasing the farm assets for $240 million.  Natural Dairy undertook to purchase the farm assets from UBNZ for $500 million.  This transaction is awaiting approval from the Overseas Investment Office.

After consulting with, and receiving information from, other agencies, the Director suspected that an investigation into the Natural Dairy land transactions may disclose evidence of serious or complex fraud.  An investigation under Part I of the Serious Fraud Office Act was commenced on 23 September 2010.

On 17 October, the Independent Commission Against Corruption (ICAC) in Hong Kong laid three charges against May Hao (formerly known as May Wang) and issued an arrest warrant for co-accused, Chen Keen (also known as Jack Chen) following his failure to appear in court.

The charges relate to allegations of corruption involving the payment of secret commissions and money laundering. 

The conspiracy charge alleges that between May 2009 and March 2010, the May Hao conspired together with Chen Keen, then an executive director of Natural Dairy (NZ) Holdings Limited, and other persons to offer two properties in Auckland and a sum of over HK$73 million to Chen. It is alleged that these were offered as rewards for Chen to procure Natural Dairy to acquire UBAH, a company owned by the Hao. The additional charges relate to the alleged laundering of NZ$150 million in crime proceeds between December 2009 and December 2010.

The SFO in New Zealand will continue to work closely with ICAC on the case.  An update is expected in January 2011.

The investigation has identified a great deal of information which has now largely been assessed and analysed.  We have carried out some interviews and are currently assessing the need for further interviews.

The investigation is at an early stage.  The Office is in the process of collecting and assessing information in relation to the UBNZ and Natural Dairy companies.

The contact for this case is John Woolford.  If you have questions regarding your personal involvement with this case or information that may assist the investigation, she can be contacted on john.woolford@sfo.govt.nz  or 0800 109 800.

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