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OIO Stays Mum Over Crafar Farms' Sale Decision

After taking the best part of a year to assess Shanghai Pengxin’s bid to buy the Crafar farms, the Overseas Investment Office has now made its recommendation to the government.

The OIO says it advised Ministers late last week on what it made of the Chinese group’s bid for the farms, but is staying mum on what that recommendation is.

The OIO’s move came just hours after a senior politician accused the office of playing political games regarding the bid and nine months after Shanghai Pengxin applied to the OIO for permission to buy the farms.

Even late last week the OIO was saying it was not in a position to advise when it could make its recommendations to Ministers.

On Friday, Labour MP Trevor Mallard told Country 99TV he believed a conspiracy was afoot and the OIO was deliberately delaying its decision, on instruction from the government, until after the Crafar farm receiver’s deadline for their bid’s approval expired on January 31.  

"Clearly if this is approved this is going to be like really embarrassing a real political hot potato. Because there are a bunch of 8 or 10 kiwi individuals and groups who are willing to buy the farms including iwi groups and neighbouring farmers.

"So you don’t need this, it’s embarrassing if it goes to the Chinese but if the Chinese are turned down that’s embarrassing as well for the Ministers as it will be seen as undiplomatic."

Mr Mallard says the Chinese government was behind the Shanghai Pengxin group’s bid and that the Chinese embassy here had been heavily involved in the process.

The OIO maintains it is a coincidence that it reached its conclusions, the same day as the integrity of its process was publicly questioned.  

However, Mr Mallard says his comments may have stimulated the OIO into acting.

"You know I’m more interested in what the decision is now, and also whether the Minister is going to make a decision if in fact it is a positive recommendation."

 

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