The detail is produced for RNZ by Newsroom and is published on Stuff with permission.
New fears about foreign interference in New Zealand’s political system are prompting calls for an outright ban on foreign donations.
Here is an example. At first glance, a horse trade heavyweight from Inner Mongolia and the New Zealand National Party form a strange coupling.
So the news that Chinese billionaire Lang Lin has donated $ 150,000 to the party – through the Inner Mongolian Ride Horse Industry group – raises eyebrows and questions.
READ MORE:
* Politicians must step up the pace of donation reform
* Jacinda Ardern: National donations “outside the spirit of the law”
* Political donations could be reformed to reduce potential influence
* New Zealand politics: foreign donations and political influence
CAMERON BURNELL / STUFF
Some fear that foreign “donations” will affect New Zealand’s political system.
The first one; why would he want to donate to the New Zealand political system?
The second; How? ‘Or’ What? Overseas donations are supposed to be capped at $ 1,500 – so how did a Chinese company manage to donate fully declared and legal 100 times the legal limit?
Basically it’s because he made the donation through a New Zealand-based company controlled by the Chinese company – so technically it’s a local donation.
History was shattered by New Zealand Herald investigative reporter Matt Nippert.
“He seems to be a relatively big wheel in the Chinese horse industry – he runs China’s largest horse farm. He’s certainly a rich man,” Lang Lin’s Nippert said.
“He seems to enjoy being photographed with MPs from a variety of backgrounds.” Nippert says Lang’s payment raises issues with the current electoral rules.
“The question is not whether it is legal – it is whether the laws governing this type of behavior are sufficient to capture the obvious concerns.”
Concerns like that of Prime Minister Jacinda Ardern, who says the donation is “outside the spirit” of the law; and those of the country’s spy agencies who say they know they are “troubling” donations and foreign relations across the political spectrum.
GETTY IMAGES
Jacinda Ardern was not impressed with the donation, saying it was “outside the spirit” of the law.
This fear of foreign interference is shared by the director of the Institute for Governance and Policy Studies at Victoria University, Simon Chapple.
“There are many ways that foreign actors – and they can be individuals, companies or foreign governments – can, in theory, donate endless amounts to New Zealand politics.
“It’s almost certain that none of these donations buy a specific policy.
“It’s part of a form of gift-giving where long-term relationships are created, and it becomes you-scratch my back, I’ll scratch yours as a long-term thing.
“Basically, you don’t criticize your friends, and giving money creates a relationship that is… a form of friendship.”
Chapple says the election donation rules, covering domestic and foreign donations, need a different look.
“If we don’t do anything about it, we’ll have more. We’re in an environment where, internationally, we have more foreign governments actively intervening in elections around the world.”
Chapple wants a cap on domestic donations and, regarding foreign donors, suggests that New Zealand follow Canada’s lead and allow only those registered on the electoral roll to donate.
“This means that New Zealand companies, NGOs, unions and foreign companies cannot invest money in New Zealand politics.
“We don’t give them the right to vote – why should they have the right to try to influence the democratic process by spending money on elections.”
