OIO investigates island sale | Northland News | Local News in Northland

Eighteen months after a Northland island changed hands, the Overseas Investment Office (OIO) is still trying to confirm the sale complies with the Overseas Investment Act.

The three titles for 3.7ha Motukawaiti Island in the Cavalli Islands group was transferred from the Motukawaiti Island Trustee Company to St Morris NZ in August 2010.

Motukawaiti was first surveyed in 1912 and was subdivided in 1972. It is the second-largest island in the Cavalli group and the only one that is privately owned.

The purchase price of the island - which is the site of a luxury boutique guest house - is unknown. The sole director of St Morris NZ is Wenning Han, of Auckland.

OIO manager Annelies McClure said in April last year the sale was being investigated to confirm it complied with the Overseas Investment Act.

When the Advocate asked the OIO for the results of the investigation, senior communications advisor Richard Braddell said it hadn't finished.

"The OIO cannot provide any further information as this might impede its investigations," he said.

The Advocate then asked why it was taking more than 18 months to look into the sale and OIO research officer Pete Hill said these types of investigation were often complex and time-consuming.

"The OIO often needs to review substantial amounts of documentation," he said.

"This process often results in the OIO becoming aware of other documentation which it needs to then request and subsequently review.

"While the OIO has a small number of staff dedicated to the investigation of breaches, it also needs to allocate its resources sensibly and effectively, and in a way that enables it to perform all its statutory functions which include application processing, responding to official information act and other inquiries, monitoring consents and conducting investigations."