MP's woes regrettable, says businessman

Stephen Preest says he feels Sammy and Pansy Wong could have done more to help him but his main issue is not with them. Photo / Supplied

The Rotorua businessman whose foray into China looks likely to lead to the abolition of MPs' travel perks says he regrets that Pansy Wong has resigned from Cabinet.

Aircraft engineer Steve Preest has denied leaking information to the Labour Party, and says he is "really sorry" that Wong and her husband have come under scrutiny as a result of the Chinese deal falling apart.

Despite his complaints that the couple should have done more to help him, Preest said yesterday that his main issue was with Chinese businessman Terry Yang, not the Wongs.

It is not the first time Preest's company has courted controversy. Five years ago, Pacific Hovercraft was ordered by the courts to pay a disgruntled customer $20,000, plus damages and costs, after an ownership dispute over one of its hovercraft.

The judge described Preest as an "unreliable witness" and "one who struck me as lacking credibility".

Preest admitted yesterday his company had been suffering from cashflow problems at the time. He described the person as the "customer from hell", and said he could point to many other happy customers.

Preest founded Pacific Hovercraft 12 years ago and Pansy Wong's husband, Sammy, was one of the original investors in the business.

According to Preest, his dream of expanding the company turned into a nightmare after he agreed to move the company to China in 2008. Sammy Wong helped broker the deal and is a shareholder in the joint venture.

The deal soured amid arguments over the reliability of the company's craft, and who was to blame.

Preest is now suing Yang through the Chinese courts for nearly $2 million he claims he is owed for royalties, parts, and lost profits.

Sammy Wong told the Herald last week the saga was a salutary tale of how doing business in China can go horribly wrong.

He believed the main reason the deal had fallen apart was because of communication problems.

"Stephen has no reason to do whatever he is trying to do to me ... I have spent so much time and my own money on this. I was there just helping him to get it off the ground."

But Preest said yesterday he did not believe communication was the issue.

After he was effectively fired by Yang, he set up a new business in South Korea, and was now considering returning to China with one of three potential partners.

"Chinese people are good workers. It's just a matter of finding the right person," he said.

Meanwhile, Sammy Wong has denied suggestions by the Labour Party that former Prime Minister Dame Jenny Shipley was also involved in the hovercraft company.

While her involvement had been discussed, it was decided to keep her business interests separate, he said.

Dame Jenny has not returned calls by the Herald.

She and Sammy Wong own several businesses together, including a company called NZ Pure & Natural.

The other founding shareholder of that company was Jack Chen, the Chinese businessman who has claimed to be a "driving force" behind the Chinese bid for the Crafar dairy farms.

Yang is also a shareholder in NZ Pure & Natural and he and Sammy Wong have other links. Until recently, they headed a Chinese business association in Auckland.

Sammy Wong said the New Zealand Chinese Business Chamber was now in limbo, as Yang had since decided to move back to China.