Fraud probes into New Zealand’s main parties raise questions over Chinese money and influence
- Three suspects, including a man who has been accused of working for Beijing, are facing trial over donations to the National Party and have now been linked to an investigation into Labour funding
- The allegations have heightened concern about ways the democratic system could be manipulated as the country prepares for elections later this year
New Zealand’s two main political parties have been embroiled in fraud investigations over their handling of donations with possible links to China, prompting increased concern about the sources of party funding and possible manipulation of the democratic process.
The Serious Fraud Office said on Monday it had started an investigation into donations made to Prime Minister Jacinda Ardern’s Labour Party in 2017.
The SFO has not released details of the case, but the party has disclosed it received donations through an auction held by a Chinese community organisation whose founder has been accused of ties to the Chinese Communist Party.
Similar fundraising events have already prompted investigations by police, and Labour officials and media reports have suggested the event may be at the centre of the latest investigation.
The group’s founder, Zhang Yikun, is also facing fraud charges that resulted from an earlier investigation into the main opposition party, the National Party, along with two other businessmen and a member of parliament.
The SFO’s new probe coincides with an election year and comes at a time when concerns about election interference by foreign countries are on the rise around the world.
Political observers have warned that New Zealand, a member of the Five Eyes intelligence group, could be at greater risk of manipulation without more robust safeguards.