N.Zealand Suspends America's Cup Funding After Fraud, Spy Claims

New Zealand froze payments to America's Cup organisers Thursday as officials investigate fraud claims in the lead-up to next year's prestigious yachting regatta in Auckland

Wellington, (APP - UrduPoint / Pakistan Point News - 2nd Jul, 2020 ):New Zealand froze payments to America's Cup organisers Thursday as officials investigate fraud claims in the lead-up to next year's prestigious yachting regatta in Auckland.

Government officials said they had suspended payments to America's Cup Events Limited, the private company organising the race, following allegations of spying and misuse of public money.

"We are not intending to make further payments to ACE. This will be revisited pending the outcome of the process," the Ministry of Business, Innovation and Employment said in a statement.

The ministry has previously said it was investigating "structural and financial matters" surrounding the organisation of the race but provided no further details.

ACE is a subsidiary of Team New Zealand (TNZ), the racing syndicate who won hosting rights for the 2021 America's Cup when it triumphed in Bermuda in 2017.

TNZ managing director Grant Dalton has repeatedly denied any wrongdoing and complained this week about his organisation being infiltrated by spies.

After the government's announcement, TNZ said it had no problem with funds being suspended.

"ACE and Emirates Team New Zealand in fact support the government in holding funds until the process is complete and we have closed out all issues," it tweeted.

The New Zealand Herald said late Thursday that TNZ's lawyers had obtained a gag order from the High Court preventing it from publishing the findings of an interim report into event finances.