Davy has secret stash in haven

By LOUISA CLEAVE

Jailed fraudster John Davy, who says he is broke, has a $30,000 late-model Harley-Davidson motorbike in Saudi Arabia and a bank account on the Isle of Man.

Less than three weeks ago Davy, a Canadian, asked the Saudi dealership holding the bike to freight it to Ottawa.

The dealership told the Herald that Davy had made the final payment on the bike with a money transfer from a Philippines bank account.

The transfer was made before he left for New Zealand to take the job of chief executive with the Maori Television Service.

The Herald has also obtained information about a bank account held by Davy on the Isle of Man, between Britain and Ireland.

The island is an internationally recognised tax haven and most of its banks provide private banking services to British expatriates and foreigners.

Davy is still receiving monthly bank statements.

Pleading poverty in court this week, Davy said he could not afford to pay back $82,000 to Te Puni Kokiri, the Ministry of Maori Development.

He was sentenced on Wednesday to eight months in prison.

Davy's lawyer, Kahu Barron-Afeaki, said his client was shocked at the sentence and had expected to be deported.

It is likely he would have been sent back to Canada.

Mr Barron-Afeaki is appealing against the sentence and a bail hearing will be held today.

The lawyer said Davy had told him he had nothing with which to pay back his debts.

"I have no knowledge of anything overseas. His instruction is that he's a goner. He has nothing," Mr Barron-Afeaki said.

A spokesman for the Harley-Davidson dealership in Damman said yesterday that the bike, a 2000 Springer model that has done fewer than 2000km, had been paid for and the registration papers to move ownership into Davy's name had been prepared.

He was unaware that Davy had been jailed for fraud.

"He wants us to ship the bike to Ottawa. He emailed us two or three weeks ago. In a couple of weeks the bike will be shipped to Ottawa."

The spokesman said the bike had cost 60,000 riyal, or $33,600.

An Auckland Harley-Davidson dealer said the near-new bike could be sold here for about $31,000.

Te Puni Kokiri has said it is considering options to pursue the money it is owed - made up of a $35,328 gross salary advance, gross salary of $20,252 and sundry expenses of $26,594 - now that Davy has been sentenced for admitting he made up most of his CV.

Davy has pledged the proceeds from the sale of his luxury Jaguar car, although the Herald understands the money he owed on it covers only its wholesale value.

The car will be auctioned and any proceeds given to Te Puni Kokiri.

A source doubted that the proceeds - if there were any - would go far towards paying off Davy's debt.

Davy's work and sport colleagues around the world spoken to by the Herald were aware he had a Harley in Saudi Arabia.

In the CV Davy used to apply for the job at the Maori Television Service, he wrote that his hobbies included "riding my Harley".

Disclosure of the American motorcycle comes after he wrote begging letters to Government ministers asking for his debts to be wiped.

In the letters, passed to Te Puni Kokiri, Davy is believed to have claimed that he and his family came to New Zealand with no assets beyond personal belongings.

His wife was from the poorest part of the Philippines, he said.

He had no income from other sources and could not settle the salary advance.

He later denied he was seeking a "huge payout" from the Government to settle his debts.

Prime Minister Helen Clark said at the time that the Government would not be giving Davy any payments to settle his debts.

The Government was under no obligation to help him.

"It is not our problem," she said. "We want back the money he owes the New Zealand Government."

Full coverage: Maori TV