'Powdergate' trail grows

By PHILIPPA STEVENSON

Kiwi Dairies is not the only company suspected of breaking export rules in a case dubbed "powdergate".

Company chairman Greg Gent said an inquiry into alleged breaches of dairy industry laws had confirmed that about 5000 tonnes of Kiwi dairy products was implicated.

Smaller volumes of product from other companies were also under investigation by accountancy firm KPMG, he said.

The Ministry of Agriculture and Forestry has also confirmed that it has launched an inquiry into whether product was exported without a permit, which would breach the Dairy Board Act, and whether it was properly certified and/or labelled according to the Dairy Industry Act.

MAF acting director-general Larry Ferguson said the issue had been referred to MAF's investigation unit after being raised with him by the Dairy Board.

He could not say how long the inquiry would take.