The Serious Fraud Office (SFO) has launched a serious fraud investigation into the Chinese-backed company which is seeking to buy more than $200 million worth of dairy farms from the receivers of the Crafar family group of companies.
The SFO said that acting on information received from the Overseas InvestmentOffice (OIO), it had commenced an investigation into transactions between Natural Dairy (NZ), Holdings Ltd (Natural Dairy) and UBNZ Trustee Ltd; UBNZ Assets Holdings Ltd; UBNZ Funds Management Ltd (the UBNZ group).
SFO chief executive Adam Feeley said information was received from the OIO together with materials from other sources and it was satisfied an investigation under the SFO Act was warranted.
The transactions in question are the proposed sale and purchase of a number of dairy farms (commonly know as the "Crafar farms") currently in receivership.
Mr Feeley said that the SFO was conscious of the possible impact of its actions, and for this reason the initial investigation would be carried out with all reasonable haste.
"After the initial investigation and report, we will decide whether there are reasonable grounds to believe an offence involving serious and complex fraud may have been committed and, if warranted, undertake a further, in-depth investigation under the powers of Part II of the SFO Act."
The UBNZ Group responded, saying they will "cooperate fully" with the SFO into its commercial dealings with Natural Dairy Holdings Limited over the proposed sale and purchase of the Crafar group of dairy farms.
Director May Wang said UBNZ Group was confident the investigation would reveal no wrongdoing.
"We are both disappointed and surprised at the way the investigation has been announced to the public prior to us having an opportunity to discuss matters with either the OIO or the SFO," Ms Wang said in a statement.
"We are also concerned as to any possible delay in the OIO making a decision on the Natural Dairy application to purchase the farms."
