New Zealand Fraud Office called in over loan deals

In New Zealand, $55 million of loans made to a geothermal project in Taupo have been written off following the collapse of the project. It had been hoped that a buyer for the geothermal development earlier this year but offers evaporated in the wake of the global financial crisis. The loans were noted in an action by the trustee of six investment trusts who has called in the Serious Fraud Office and is preparing to take legal action over allegations of “improprieties” by some of the parties the trusts lent money to. It is not clear whether there were any “improprieties” surrounding the geothermal project. A total of $457 million is involved in the trusts.