Business as usual despite official probe

Hawke's Bay Seafoods' development continues despite an MPI investigation. Pictured in July are directors Nino (right) and Joe D'Esposito. Photo / File

Hawke's Bay Seafoods $3 million development is continuing, despite government agencies poised to seize company and directors' assets.

Last week the Ministry of Primary Industries (MPI) led a raid on the Napier business and the police Asset Recovery Unit "froze" eight properties and five vehicles through the High Court. The ministry alleges the amount of fish Hawke's Bay Seafoods caught did not tally with the amount exported.

Gemco Construction managing director Darren Diack said it was business as usual for his Hawke's Bay firm, after meeting Hawke's Bay Seafoods managing director Nino D'Esposito and general manager Marcus D'Esposito.

"We were concerned of course, like everybody, but we had a couple of meetings with Hawke's Bay Seafoods and we are comfortable that it is business as usual," Mr Diack said.

The Pandora Rd project was expected to be finished by Christmas, he said.

The Strata Group-designed building includes cool stores and upstairs offices with views to the Inner Harbour, towards the Iron Pot and East Pier.

The family fishing firm captures the whole fishing supply chain. It is a quota owner, vessel operator, processor, wholesaler, exporter and retailer.

It exports to China, South East Asia, North and South America and its online business employs several staff.

It leases Ngati Kahungunu's fishing quota, which Ngati Kahungunu Iwi Incorporated chairman Ngahiwi Tomoana said was part of an agreement for the company hiring iwi laid off by Moana Pacific Fisheries.

The alleged inconsistencies in Hawke's Bay Seafoods catch numbers over the past 18 months piqued the interest of other government agencies, with 88 officials involved with last week's MPI-led raid from Customs, Immigration and the Ministry of Business Innovation and Employment.

The decision by MPI on whether or not to lay charges could be months away.

Sites associated with the company were visited in Hawke's Bay, Wellington, Tauranga, Gisborne, Chatham Islands and Christchurch.

Despite the lack of charges the police Asset Recovery Unit "froze" eight properties, five vehicles and cash through the High Court, putting the owners on notice they may be taken under the Criminal Proceeds (Recovery) Act.

The raid came while Nino D'Esposito was on a trip to China and Chatham Islands.

On his return he said he was "dismayed" by the MPI allegations and was co-operating with the investigation.

"We live in a country where you are innocent until proven guilty. We are committed to fishing and fish-farming sustainably. We look forward to having our day in court if charges are laid."

It was business as usual for the company and its 150 workers, he said.

"We are one of the largest employers in the Hawke's Bay. We are still fishing and working on meeting orders."

The company has hired high-profile public and employment law specialists Chen Palmer.

MPI director of compliance Dean Baigent said fishery offences had heavy penalties to act as a deterrent, because of the difficulty in proving cases in court.

"When we do find offending of seriousness and magnitude a strong message - built into the Fisheries Act - needs to be sent due to that difficulty."

Nino D'Esposito has past fishery convictions, including making false statements in quota reports and the illegal possession of fish with brother Hawke's Bay Seafoods director Joe.

In 1994, the Wellington District Court imposed a fine of $989,395 on them and related companies, with $10 million worth of boats and vehicles forfeited.