The directorship of a Hong Kong-based company wanting to buy New Zealand dairy farms is being called into question.
The Overseas Investment Office is looking at whether Natural Dairy NZ Holdings' purchase of more than 20 farms would benefit the country.
As well as the dairy farms - once owned by Crafar Farms, which is now in receivership - the company may invest in milk powder production plants and livestock, up to a total value of $1.5 billion, though it is still raising funds for the venture.
The woman spearheading the deal, May Wang, has failed business ventures in New Zealand here, and has sums of money she still owes.
Overseas Investment Office manager Annelies McClure says while minor failures might not necessarily be fatal to the bid, her initial information may suggest otherwise.
"It would appear from publicly available information that Ms Wang's business history is not consistent with an ability to fund purchases of this size."
The company's lawyer, Kerry Knight, says May Wang owes money to banks from shortfalls in mortgagee sales stemming from the liquidation of companies in New Zealand.
"Whether or not she has failed in a previous business venture, yes that is an issue and needs to be looked at and dealt with - but it was a failure as a result of a combination of factors."
Mr Knight says Jack Chen, a businessman who has been linked to the proposal, has been censured in the past in China over some trading activities, but is no longer a director of Natural Dairy NZ Holding.
