No Cedenco links so far in US investigation: OIO

The Overseas Investment Office (OIO) was warned last year a company linked to the owners of Cedenco Foods was being investigated by the FBI, but says so far nobody linked to Cedenco has been implicated in any corruption.

Cedenco, which employs 88 full time and more than 400 seasonal staff in New Zealand, was placed into receivership on Monday, although ANZ Bank said it would provide seasonal funding to keep the company going until it could be sold.

Campaign Against Foreign Control of Aotearoa (CAFCA) spokesman Murray Horton said it issued a warning in August 2008 about SK Foods -- a company then owned by the US-based Sayler Family Trust, which owns Cedenco.

OIO manager Annelies McClure told NZPA SK Foods could be described as a "sister company" of Cedenco.

Scott Sayler was listed as chief executive of SK Foods before it was sold out of bankruptcy in June and was also a director of Cedenco before resigning on November 2.

American prosecutors have said they have taped phone conversations showing Mr Sayler and other executives engaged in and encouraged unlawful behaviour.

Allegations against SK Foods included bribery, inflating food prices and selling stock which was older, mouldier or more diluted than certified.

Ms McClure said the issues raised by CAFCA were investigated, but at the time only low level employees had been exposed and charged by the FBI -- although those accused said they were following the instructions of senior staff.

She said for the OIO to act would most likely require the conviction of someone directly involved in Cedenco.

"The implication is there that senior executives, and perhaps even the persons controlling Cedenco Foods are involved.

"(But) without something more concrete we are just speculating and we can't take it any further."

US media reports say eight people have so far been charged, including former SK Foods vice-president Jeffrey Beasley who, in August, admitted bribing buyers.

Federal prosecutors last week said former SK Foods senior vice-president Alan Huey was expected to plead guilty to a conspiracy charge.

Cedenco has the largest tomato processing factory in the southern hemisphere at Echuca in Victoria, and is one of New Zealand's biggest vegetable processors, with a Gisborne factory, a processing plant at Whakatu in Hawke's Bay and a business in Ohakune. Its products include fruit and vegetable powders, purees, pastes, frozen vegetables and fresh produce.

NZPA