Throughout a seven-week High Court trial over fraudulent donations to the National and Labour parties, one name was brought up time and time again: Yikun Zhang.
The Crown’s case at the high-profile trial, which saw former National MP Jami-Lee Ross accused alongside six others, was that sham donors were used and put forward by men on the inside of both political parties to disguise the true donor, Zhang.
On Wednesday, Zhang was found guilty of obtaining by deception in relation to a $100,050 donation made to the National Party in 2018. He was found not guilty in regards to a donation made to National in 2017 and to a donation made to the Labour Party.
But who is Zhang and what are his ties to National?
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Zhang moved to New Zealand in 2000 before being granted residency in 2001 under the general skills category.
Since then, he has set up numerous businesses with interests in real estate development, property management, import and export trade, business investment, hospitality and health products.
He also has offices in Hainan Province, Guangdong Province, Hong Kong, Bangkok and Thailand.
In 2018, Zhang invited Simon Bridges, the then-leader of the National Party, to his home for dinner. A week later, they met up again at a fundraiser in Auckland’s Newmarket.
At the fundraiser, Zhang, with Colin Zheng translating, offered to make a $100,000 donation to National.
Joe Zheng then made seven transfers, totalling $100,050, to the National Party.
Zhang was born in Puning, Guangdong, and joined the People’s Liberation Army Naval Air Force in 1990. In 1992, he retired from the army and started work at Hainan Highway Administration before graduating from the Chinese Academy of Social Sciences.
He has been a member of the Chinese People’s Political Consultative Conference – "an organisation of the patriotic United Front of the Chinese people" – which was founded by the ruling Communist Party of China, various democratic parties and democrats with no party affiliations.
He is vice-chairman of the Hainan Provincial Federation of Industry and Commerce, and provides scholarships to the Puning Vocational School. He is also a vice-chairman of All-China Federation of Industry and Commerce.
According to the Companies Register, he has a shareholding in Chao Zhou Restaurant. His sister also has a shareholding, as does Colin Zheng, who was accused alongside Zhang in the political donations trial.
On Wednesday, Zheng was found guilty of obtaining by deception in relation to both the 2017 and 2018 donations. His twin, Hengjia (Joe) Zheng, was found guilty in relation to the 2018 donation and of obstructing a Serious Fraud Office investigation.
Zhang has further shareholdings in KCC Holding Ltd and HLG Construction Ltd, whose director is Colin Zheng.
He is also one the directors and shareholders for Chao Shan Trustee Ltd, Warewell Ltd, HLG Holding Ltd and Chao Hui Holding Ltd.
Along with his directorships, Zhang owns six commercial properties or car parks across Auckland.
He also owns two houses in Remuera. His properties are worth about $75 million, according to Auckland Council’s 2021 CVs.
The businessman is also the founding member of the Chao Shan General Association of New Zealand.
Zhang founded the association in 2014 focusing on serving the Teochew community in Aotearoa.
Chaoshan has been known for producing successful entrepreneurs for millennia, with the Tang dynasty referring to business people from the area as the “Chaoshan Business Gang”.
Some of the richest Chinese people living in Southeast Asian are Teochew Chinese, including property tycoon Li Ka-Shing, who bought Taharoa Iron Sands business from New Zealand Steel’s parent company, Australia’s BlueScope Steel, for $250m in 2009.
Many famous brands in China originate from Chaoshan, including personal hygiene product companies Yaqian, Lafang and Difaso, stationery manufacturer Genvana and lighting products brand Yage.
Zhang also played a key role in securing hosting rights for Auckland to hold the 20th Teochew International Convention.
In September 2018, he was made a member of the New Zealand Order of Merit for services to New Zealand-China relation and the Chinese community.
A spokesperson for the Prime Minister said Jacinda Ardern may consider advising the King to cancel the appointment of a person to an Order where the individual’s actions are such that, if they continue to hold that honour, the honours system would be brought into disrepute.
Zhang was also charged over donations made to the Labour Party, but was found not guilty.
Zhang, the Zheng twins and the people with name suppression were also found not guilty over Labour Party donations.
Ross was found not guilty of the charges against him.
The Labour Party charges laid against Zhang centred around an art auction at which five paintings were purchased. The Crown’s case was that names were entered as buyers at that auction, but they were not the true buyers.
Zhang previously issued a statement through his lawyers saying he purchased the paintings and they were hanging in his home.
In addition to the paintings, he also purchased an imperial robe and two other artworks for $100,000 at a Labour Party auction in September 2017.
The robe has since been donated to a museum in his home province.
Zhang said he was not a member of the Chinese Communist Party and had renounced his Chinese citizenship.
His lawyer, Blair Keown, told the court Zhang was well regarded for his services to the Chinese community.
Zhang will be sentenced, alongside the Zheng brothers, on November 30.
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