Police zero in on $3m absconders

Finn Scott-Kelly is one of the residents in a rental property owned by Leo Gao. Photo / Glenn Jeffrey

Tenants of Westpac bank runner Leo Gao have been living rent-free since he fled the country two months ago with $3.8 million of misdirected money.

Police say they are closing in on Gao and his partner Kara Hurring, who have been the subject of an international manhunt since taking off, but refuse to comment further.

It is understood a "mutual assistance" request for help was sent to the Chinese Government and that police are working with a liaison officer in Beijing.

Police could not be reached for comment yesterday.

On or about May 5, Gao was mistakenly granted a $10 million overdraft by Westpac, at a time when his BP service station in Rotorua was struggling financially.

Staffing was at a minimum, Ms Hurring was working for free with 7-year-old daughter Leena to think of, and the partly-stocked shop was often closed during business hours.

So when the windfall came their way it was too tempting to ignore.

Since then, the half dozen tenants at Gao's Eden Terrace property have been living rent-free. They have kept up electricity payments to avoid having their power cut off, but have been physically unable to pay rent.

"The last time I paid it went in, but that was the Thursday morning when it was announced he had disappeared. When the others tried to pay on the Friday it wouldn't go in," 19-year-old student Finn Scott-Kelly told the Herald yesterday.

Mr Scott-Kelly said he and the other tenants had tried to recover their bonds from the Tenancy Tribunal, but were told they had not been lodged.

"I don't really mind though because it's two weeks' rent and we've already got that back in rent."

But Tenants Protection Association co-ordinator Angela Maynard said Gao was legally bound to+ lodge the bond and was liable under the Residential Tenancies Act for not doing so.

She advised the tenants to set up an account to pay rent into, so that if Gao returned and demanded it they were not in the wrong.

Mr Scott-Kelly said neither he, nor any of other tenants had heard from their landlord since his disappearance.

Police are staying mum on their investigation, but it is understood Gao has separated from Hurring.

Hurring's sister Aroha went to join the pair days after their disappearance, but returned to New Zealand in late May. She told police at the time, that her sister was in the Hong Kong area, but did not know where Gao was.

Meanwhile Westpac is still seeking to recover the outstanding $3.8 million.

"We are still very much focused on what we can do to get more of that back," Westpac spokesman Craig Dowling said.

He said the bank was working closely with police, who were helping with contacts in China.