Enforcement action taken
Find out about the enforcement action taken by the Overseas Investment Office since 2015
Overseas investors must get consent when the Overseas Investment Rules require them to and meet the commitments they made when they applied for consent.
We will usually publish the outcome of any enforcement action we take, unless there is good reason to withhold information. On this page we set out information about enforcement action we have taken since 2015.
We carry out our enforcement function through a range of activities, including monitoring compliance with conditions, investigating possible breaches and taking appropriate enforcement action where we find the Rules have been broken.
Learn about how the overseas investment rules might apply to you
Read more about our enforcement criteria
Read the full informationabout the enforcement powers and tools available to us
Court orders
Current proceedings
We currently have two proceedings before the High Court where the Office is seeking disposal and civil penalty orders for purchases of sensitive land without consent. As these matters are currently before the courts, it is not appropriate for us to provide further information at this time.
Decided cases
Penalties or disposal orders have been made in the following cases:
Name / entity | Date | Details |
|---|---|---|
| BCH Investments Ltd | 12 July 2019 | The High Court ordered BCH Investments Ltd to divest its interests in two properties, and pay:
for failing to obtain consent under the Overseas Investment Act 2005. The sale of the properties must occur within 2 years, with leave reserved to Land Information New Zealand to seek further orders under s47 of the Act if the divestment has not occurred within that time. |
| Zhongliang Hong, Xueli Ke, IRL Investment Limited, Grand Energetic Company Limited | 4 July 2019 | The High Court ordered the defendants to pay a total of $2,970,256 in civil penalties and costs for failing to obtain consent under the Overseas Investment Act 2005 for the purchase of two Auckland properties. Zhongliang Hong and Xuelie Ke were each ordered to pay a penalty of $307,500 and $10,000 to the Overseas Investment Office as a contribution to its costs. IRL Investment Limited was ordered to pay $2,335,256 in gains from the sale of one property. Grand Energetic Company Limited was ordered to sell the other property. Oral judgment delivered 4 July 2019. |
Agria (Singapore) PTE Ltd (part of Agria Corporation) and Mr Alan Lai | 21 March 2019 | The High Court imposed civil penalties for breach of good character conditions that attached to conditions of Agria's consent to invest in PGG Wrightson, namely:
Agria and Mr Lai were ordered to pay $30,000 to the Overseas Investment Office as a contribution to its costs. Note that the High Court decision followed a settlement entered into between the parties – refer to extract in “Settlement” section below. |
Wenbing Tang | 12 March 2018 | The High Court ordered the defendants pay a total of $847,000 in civil penalties and costs for failing to get consent under the Overseas Investment Office before buying a property. |
Carbon Conscious New Zealand Limited | Filed – 2015 | Carbon Conscious was ordered by the High Court to pay a civil penalty after using an associate to purchase sensitive land on its behalf. |
Disposal of property
Name / entity | Date of disposal | Details |
|---|---|---|
| Kingstown Blue Spring Resort Limited (formerly Kingstown Volcano Springs Limited) | Forthcoming | In July 2014, KBSR was granted consent to acquire the Okoroire Hot Springs Hotel on 27 hectares of sensitive land at 18 Somerville Road, Okoroire. KBSR’s consent conditions required it to implement the developments described in its Business Plan by 17 August 2018. KBSR did not do so and the OIO has now required it to dispose of the property in accordance with a disposal framework set out in its consent conditions. Further details will be released when appropriate. |
| Michael Rems and Julie O’Shea | 20 December 2018 | Rems and O’Shea (American investors) were granted consent in 2015 to acquire approximately 0.5 hectares of sensitive land on Waiheke Island. Consent conditions required the couple to become ordinarily resident in New Zealand within three years. They did not do so and consequently we required them to dispose of the property – which they have now done. |
Overseas Investors (names withheld pending sale) | Forthcoming | Properties in the Twizel area are currently for sale. Overseas investors acquired 326.993 hectares of sensitive land without consent. A settlement agreement has been entered into. Further details will be released when they become available. |
Flying Class Limited | 20 September 2018 | Flying Class Ltd acquired approximately 5.7728 hectares of sensitive land near Matamata (a horse stabling facility). Consent conditions required it to complete certain development works. However, it did not complete all of those works and was required to dispose of the property. Flying Class has now disposed of the property. |
Tui Estate Limited | Forthcoming | Property is currently for sale. |
Waiheke Island Airpark Resort Limited | 5 December 2018 | Conditions of consent required the consent holder to develop Waiheke Island airfield (8.9580 hectares) and to dispose of the airfield if it was not developed. |
Canres Limited | 26 July 2019 | Conditions of consent required the consent holder to develop a recreational and sport lodge business on the property (40 hectares) and to dispose of the property if it was not developed. |
MTS Energy Limited | 27 July 2018 | Overseas investors acquired approximately 0.5 hectares of land in Northcote, Auckland without OIO consent. |
Sino-NZ Tourism Development Limited | July 2018 | Overseas investors acquired over 5 hectares of land near to Flatbush, Auckland without consent. OIO consent was required because the land is sensitive as it is over 5 hectares in a non-urban area. The consent holder has disposed of the property. |
Terrior Winery Fund | 2017 | Mr Charles Banks, the majority shareholder of Terrior Capital LLC, which manages Terrior Winery Fund, has been sentenced to four years imprisonment for fraud in the United States. |
Whisper Creek Golf Resort Limited (previously Christchurch Golf Resort Limited) | Aug-17 | Conditions of consent required the consent holder to develop a golf resort but it has not done this. The consent holder has disposed of the property. |
Silver Fern International Travel & Trade Limited | Oct-16 | Conditions of consent required Silver Fern to develop an accommodation business on the property and to dispose of the property if it did not. |
Nirvana Capital Limited | Apr-16 | Conditions of consent required two of the shareholders of Nirvana Capital Limited to become ordinarily resident in New Zealand and to dispose of the property if they did not. |
Mikhail Khimich | Dec-15 | Conditions of consent required Mr Khimich to develop an organic winery on the property and to dispose of the property if the winery was not developed. |
Settlement
Name / entity | Date | Details |
|---|---|---|
JBS Australia Pty Limited | October 2019 | Settlement related to an investigation into JBS Australia’s requirement for individuals with control to remain of good character under conditions of JBS Australia’s investment in Scott Technology Limited (Scott). The Overseas Investment Act Office (OIO) has settled its investigation into JBS Australia following possible links to a Brazilian corruption scandal. The OIO has concluded that the individuals linked to the corruption scandal (Joesley and Wesley Batista) are not exercising control over JBS Australia and its investment in Scott. The OIO is also satisfied that the Brazilian corruption scandal occurred offshore and that New Zealand investors were not put at risk. If Joesley and Wesley Batista assume any control over JBS Australia in the future, the OIO may take stricter measures and JBS Australia may be required to sell its investment in Scott. |
Agria (Singapore) PTE Ltd (part of Agria Corporation) and Mr Alan Lai | December 2018 | Agria and Mr Lai agreed that:
As a result Agria and Mr Lai agreed to:
|
| Forest Growth Holdings Ltd (FGHL) | July 2018 | The settlement related to FGHL’s role in the transaction described in the New Forest entry below. |
New Forests Asset Management Pty Limited (New Forests) and Wairarapa Estate Limited (WEL) | October 2016 | The settlement relates to an arrangement between New Forests (through WEL, a company managed by New Forests) and Forest Growth Holdings Limited (FGHL), whereby FGHL – a New Zealand company – would purchase small blocks of forestry land to amalgamate and then on-sell to New Forests – an overseas company. In entering into this arrangement, FGHL was effectively acting as New Forests’ associate. |
Udo Lammerting | April 2018 | Settlement related to the acquisition of several properties in the Northland region which were investigated by the OIO. |
Andrew Turney | May 2015 | Settlement related to two of six farming established by the late Alan Hubbard that were investigated by the OIO and resulted in the disposal of sensitive land acquired without consent. The other four syndicates had disbanded by this date and the properties had already been sold. |
Administrative penalties
Penalties for retrospective consents
The OIO can grant consent for an investment retrospectively where an investor inadvertently break the rules. The OIO has provided guidance outlining when a retrospective consent may be appropriate and the factors we take into account in setting the administrative penalty for a retrospective consents.
Read the OIO guidance on retrospective consents
From 1 July 2017 any penalties imposed for retrospective consents is included on the decision summary issued when consent is granted.
Penalties for late provision of information
Prompt and accurate provision of information is key to our ability to detect and take action on breaches of the rules and to effectively monitor whether investors have met conditions imposed on consents.
We impose penalties for the late provision for information or documentation.
| Financial year | Number of penalties issued for late reporting |
|---|---|
| 2017/2018 | 3 |
| 2018/2019 | 7 |
| 2019/2020 | 3 |
Names of repeat non-compliers may be published.
Warnings
The following warnings have been issued by the Overseas Investment Office since 2015:
Name | Date | Details |
|---|---|---|
| Min Jia | 13 September 2018 | Warning for acquiring an interest in shares in companies which own sensitive land without consent in 2014 and 2015. Read the warning (PDF 191KB) |
| New Forests Asset Management Pty Limited (New Forests), Wairarapa Estate Limited (WEL) and Forest Growth Holdings Ltd (FGHL) | 13 July 2018 | Warning around acquiring sensitive land without prior consent by using a New Zealand associate to allow amalgamation of land and delay the need for consent. Read the warning (New Forests, WEL and FGHL) (PDF 832KB) |
Itoham Yonekyu Holdings Inc | 28 July 2017 | A warning for obtaining an interest in sensitive assets, on 1 April 2016, without consent. |
Southern Paprika Limited | 15 December 2016 | Warning for acquiring sensitive land without consent in 2005 |
Harbour Edge Avocados Limited and Southern Paprika Limited | 15 December 2016 | Warning for acquiring sensitive land without consent in 2015. (The matter was also subject to a retrospective application for consent.) |
Rafael and Federico Grozovsky | 28 September 2016 | Warning that information provided to the OIO must be complete and accurate and no material omissions should exist in relation to good character checks. |
I-Lun Chien | 12 December 2015 | Warning in relation to a false statement made to the OIO. |
Contact Energy Limited | 8 June 2015 | Warning in relation to acquisition of an interest in two relatively small areas of sensitive land without consent in 2011 and 2014. The land was no longer owned by Contact Energy. |
Russell Mawhinney | 8 September 2017 | Warning in relation to incorrect legal advice given to overseas persons. |
Referral complaint to professional society
We can refer a person to a professional conduct body in relation to a breach of the Overseas Investment Rules.
Name / entity | Date of referral and to which professional society | Details |
|---|---|---|
In relation to Carbon Conscious New Zealand Limited | December 2017 – New Zealand Law Society | Carbon Conscious New Zealand Limited obtained legal advice on the conduct of its business in New Zealand, including the acquisition of land. |
Compliance Action
While it will often not be appropriate for us to comment on matters we are investigating, we may release information in relation to compliance action we are in the process of taking.
In December 2018 we issued a cease and desist notification to require misleading advertising about exemptions under the Overseas Investment rules to be removed. The advertising material was removed immediately.
Compliance Letters
To help encourage better compliance in the future, we issue letters, to individuals or organisations explaining how the Overseas Investment Rules need to be met and how they apply to them. Often these letters will clarify the application of the rules to particular situations or to remind people of particular compliance requirements.
Compliance letters issued:
| Financial year | Compliance letters issued |
|---|---|
| 2017/2018 | 25 |
| 2018/2019 | 19 |
| 2019/2020 | 13 |