# Six Companies Linked to Drug Lord's Parents Enter Liquidation High Court orders liquidation of Cheng Group entities following extensive tax evasion investigations. - **Source:** [NZ Herald](https://www.nzherald.co.nz) - **Published:** 2026-11-10 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/ca0ade2f-a167-439d-bf8e-acc0f3fd40bd ## Court-Ordered Liquidation Process The High Court at Gisborne ordered the liquidation of six companies under the Cheng Group banner on September 25. This action follows a long-standing legal dispute regarding unpaid GST and income tax. KPMG partners Kristal Pihama and Leon Francis Bowker were appointed as liquidators to manage the assets and liabilities. ## Family and Criminal Connections The companies are linked to William Cheng and Chew Hong Nyioh, parents of convicted methamphetamine trafficker Thomas Cheng. Thomas Cheng was based in Gisborne before his 2016 arrest and subsequent ten-year prison sentence. He was deported to Singapore in 2023, ending his direct involvement in the local property management operations. ## Financial Irregularities and Tax Debt Inland Revenue assessed the total tax debt for 18 associated companies at over $11.4 million. The six liquidated entities failed to meet tax obligations, leading to the current court intervention. Liquidators noted that directors lacked separate bank accounts, instead funneling all business transactions through personal or family trust accounts during operations. ## Asset Restraint and Forfeiture Authorities previously restrained multiple commercial properties and $10 million in bank accounts amid money laundering and tax evasion suspicions. While a judge found no evidence of money laundering in 2023, the court confirmed blatant tax evasion. A $1.6 million forfeiture order was later issued against the family's frozen bank accounts. ## Property Portfolio and Management The liquidated companies hold properties across New Zealand, including sites in Whanganui, Te Puke, Timaru, and Pahīatua. Some of these buildings have remained unoccupied for extended periods, complicating the management process. Mortgage International LLP, a Singapore-based entity also linked to the parents, is currently listed as the sole secured creditor. ## Current Status of Assets Liquidators are currently reviewing lease documentation and communicating with existing tenants to assess the portfolio's value. Several parties have expressed interest in purchasing the properties, though no formal sale process has begun. The liquidators are awaiting further information from the mortgagee before determining the next steps for asset disposal. ## Local Impact and Governance The neglected state of these commercial buildings prompted Gisborne Mayor Rehette Stoltz to request stricter landlord regulations in 2024. The local council reported significant difficulties in addressing building maintenance issues with the family's representatives. This case highlights the challenges municipalities face when managing commercial properties owned by entities under investigation. ## Future Liquidation Outlook The liquidators have stated that providing a completion date for the process is currently impossible. While the companies were involved in complex legal proceedings regarding criminal proceeds, these cases are now concluded. Creditors are advised to contact Henry Wang at KPMG to discuss their claims against the remaining assets. ## Sources covering this story - https://www.nzherald.co.nz/gisborne-herald/news/six-companies-linked-to-drug-lords-parents-put-into-liquidation-over-unpaid-tax/premium/CABK4N2TUVEAVFYMYJV2Z3B3YM/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._