SO THE LIU SCANDAL IS A FISHY AFFAIR.

The Herald on Sunday reported this morning that Liu is well known to fishing interests - so it is more than fair to expect Shane Jones had some knowledge of him as well. We have been told as much already.

So we find out that Liu has donated to the Labour Party and he has been granted citizenship and residency by a Minister who may well have known him who granted the privileges against the advice of immigration services.

Now thats not tidy.

More from the Herald

A millionare businessman wanted by authorities in China - and who has been granted New Zealand citizenship - donated money to a Labour Party campaign fund.

The Herald on Sunday understands Yang Liu donated $5000 to Cabinet minister Chris Carter's Te Atatu electorate committee before the last election. Wagering a bob each way, he also met National's John Key and donated another $5000 to that party.

The donations were made shortly after Liu, also known as Bill Liu, applied for New Zealand citizenship.

MPs from both parties - Dover Samuels and Pansy Wong - wrote supporting his citizenship application.

And two months ago, Associate Immigration Minister Shane Jones approved Liu's citizenship application - believed to be against advice of officials. The Internal Affairs Department is still investigating the possibility of immigration fraud that could result in Liu being prosecuted or losing citizenship and residency.

The citizenship approval had been delayed since 2005 while Internal Affairs officials asked questions of Liu about his multiple names, passports, dates of birth and companies.

In a letter leaked to TGIF Edition journalist Ian Wishart, department official Johannes Gambo asked Liu to substantiate his "good character", given his outstanding arrest warrant in China.

According to Australian authorities, Yan was wanted in China for alleged embezzlement, then travelled to Australia on a number of occasions, first as Yongming Yan, then as Yang Liu.

He was later charged with operating bank accounts under a false name and in November 2006, the Supreme Court of New South Wales ordered Liu to forfeit more than $3.3 million.

The money was later repatriated to the Republic of China, according to the Commonwealth Director of Public Prosecutions of Australia in October last year.

At this time, Liu was a New Zealand permanent resident and had been since 2002. He lives in a plush Metropolis apartment worth $2.4m, according to a 2005 valuation, and also bought a $5m waterfront property in Bayswater in 2006.

Liu employs 30 people at his popular Chinese restaurant, Jade Terrace in Manukau, which has hosted election fundraising dinners for Labour candidate Raymond Huo, National's Pansy Wong and, yesterday, Act's Kenneth Wang. He has also been involved in seafood exports with Talleys, Sealord and Sanford.

Dover Samuels is still standing by his man saying Liu is no friend of the Chinese Govt.

An inquiry is the only way to add clarity to this issue .