THE Cook Islands Government is investigating reports of alleged wrongdoing by Hong Kong companies using the country's tax haven status, according to Justice Minister Tiki Matapo.
Last week, Hong Kong stock exchange officials considered reviewing the Memorandum of Undertaking between the territory and the islands following revelations in the Allen report into the Allied Group.
This showed that many of the deals reported had been done through a trust company in the islands called European Pacific, which was later taken over by Standard Chartered.
The Allied inspector, Mr Nicholas Allen, in his report said that his attempts to establish the facts about many of the Allied transactions had been materially inhibited by Cook Island laws.
Documents to which he was entitled under Hong Kong law were refused to him because officers of the Cook Island company would have been guilty of a criminal offence under the local laws.
Mr Matapo said the Government was checking the reports and would act if they were correct.