New Zealand’s Green Investment Fund is under scrutiny following the unexpected downfall of SolarZero.
Established by the previous government to support sustainable projects, the fund has invested over $100 million of taxpayer money into the company, which was recently placed into liquidation due to “unsustainable losses.”
Cecilia Tarrant, chairwoman of NZGIF, was called in for a meeting with Finance Minister Nicola Willis and Climate Change Minister Simon Watts to explain the growing concerns surrounding the fund’s investment in SolarZero.
Tarrant then clarified that the fund had not “invested in SolarZero, the company.”
She explained that NZGIF had lent money specifically for solar panels and batteries rather than investing directly in SolarZero itself.
In a report released on Tuesday, appointed SolarZero liquidators Russell Moore and Stephen Keen disclosed that over 598 unsecured creditors were owed by SolarZero at a total of $39,086,877.
More than $1 billion in holiday pay is owed to employees, along with an undisclosed amount owed to 34 secured creditors.
BlackRock, which holds significant stakes in SolarZero, also manages substantial portions of KiwiSaver funds, raising concerns among former employees.
“If they can treat people like they’ve treated SolarZero, just throw them out on the street; they’re not complying with the social part of sustainability,” Eric Pyle, the former director of public affairs and policy at SolarZero, stated.
For Pyle, “I don’t think we can trust them with our KiwiSaver funds.”
Meanwhile, Tarrant mentioned that the fund is actively seeking “the best option for us to protect taxpayers’ money.”
Finance Minister Nicola Willis has requested assurances regarding other taxpayer-funded investments made by the fund, noting that this situation raises potential questions about its feasibility.
“This is not a great situation for any lender to be in,” Tarrant said.
“But I believe that we are an important part of New Zealand’s decarbonisation and that there is a real reason for us to continue to exist.”