New Zealand kiwifruit marketer Zespri has told Fruitnet.com that its global president of sales and marketing Yu Jan Chen has taken leave from “active duties” for the company while its management “complete a review of historical matters relating to the China market”.
As reported by Fruitnet.com earlier this week, the Chinese authorities have issued an arrest warrant for Chen in connection with the recent high-profile fraud case involving the kiwifruit exporter.
Last week, a Shanghai Court found Zespri’s China-based subsidiary, Zespri Management Consulting Company (ZMCC), and one of its employees, guilty of being an accessory to the under-declaration of customs duties by Zespri’s former independent importers between 2008 and 2010.
In a statement today, Zespri said that both ZMCC and the ZMCC employee will appeal the judgment. This means the judgments will be effectively suspended pending the result of the appeals process, which could take several months to complete.
Chen – under whom the convicted ZMCC employee worked in Shanghai – is also wanted by Chinese fraud investigators looking to prosecute him for his alleged role in the completion of invoices registering lower prices for Zespri Gold kiwifruit, and Zespri’s internal investigation appears likely to further review his conduct over the period concerned.
Simon Limmer has been installed as acting general manager of Zespri’s China business until further notice. Since 2010, Zespri has adopted new export procedures and worked with new importers in China, and bigger changes appear to be on the cards as the company is currently reviewing its strategy in the country with a view to securing greater control on this large and rapidly-growing market.
