Kiwifruit finger-pointing begins

“Originally the importer – and he was the importer – did plead guilty to not paying his duty. He has appealed his sentence so he is trying to get a reduction in sentence I suspect,” Trebilco told Rural News.

Liu Xiongjie is serving a 13-year jail term imposed last year in China after pleading guilty to criminal smuggling. He was also ordered to repay $7 million in unpaid customs duties.
He is now appealing and lawyers are arguing that officials should have identified the case as several corporations engaged in joint smuggling with Zespri the primary offender, TVNZ has reported.  The convicted man’s nephew says his uncle only pleaded guilty to get out of jail to see his dying father. 

In a background document, Zespri said Xiongjie was an importer who bought fruit from Zespri and sold it in China. But Xiongjie’s lawyers say he was an agent who sold fruit on behalf of Zespri working on commission, the TV report says.

Trebilco says these latest accusations will be considered in an independent investigation by NZKGI into Zespri’s dealings in China. “We will no doubt consider that…. we don’t know if it will add much but we will consider that.”

A Zespri subsidiary and its employee were found guilty in a Shanghai court in March on charges relating to underpayment of customs duties. The subsidiary, Zespri Management Consulting Company (ZMCC), and its employee who faces five years’ jail are appealing the conviction.

Zespri is not commenting so as not to prejudice the appeals of both ZMCC and its employee.

Following this conviction NZKGI announced it was setting up an independent inquiry to look into the circumstances that gave rise to the Chinese prosecutions and any effects on the Zespri brand and continued trade with China. The probe started in early March and was due to report back last month, but has been delayed because of the latest developments and “complexity of the issues”.

The growers’ organisation says it understands the charges relate to importing arrangements from 2008 to 2010 only, and from 2011 onwards, the import arrangements operated by Zespri are not being questioned by the Chinese authorities.

Trebilco told Rural News “yes we’ve started an independent inquiry… whether it is independent or not, it’s up to people to make up their own minds about”. He is chairing the panel which also includes another grower forum representative and an independent member.

In its latest newsletter NZKGI says its core role is to protect the marketing the single point of entry (SPE) marketing structure. “On behalf of growers, and for continued government support, we must ensure that Zespri is effectively and legitimately exercising the SPE on behalf of growers. Another reason for the China Inquiry is to demonstrate that as an industry, we are responsibly using the SPE.”

Meanwhile the ACT party is calling for an urgent inquiry into Zespri after allegations on TVNZ’s One News that it knew about the actions of its importer in China.

“These are serious allegations and kiwifruit growers have the right to know the truth since they are being forced by the government to sell their products through this company,” says MPI spokesman Don Nicolson. He says they will be writing to the Minister for Primary Industries Nathan Guy to push for the inquiry.