Christopher Chandler Legatum billionaire Putin business
Christopher Chandler Legatum billionaire Putin business

BusinessMay 4, 2018

Who is reclusive Kiwi billionaire Christopher Chandler? And is he a Russian spy?

Christopher Chandler Legatum billionaire Putin business
Christopher Chandler Legatum billionaire Putin business

Welcome to the Cheat Sheet, a clickable, shareable, bite-sized FAQ on the news of the moment. Today, who is the New Zealand billionaire at the centre of a bubbling Brexit scandal?

There aren’t many billionaires who have called New Zealand home.

Of course there’s Graeme Hart (dubbed by Forbes New Zealand’s perennial richest person) with an estimated wealth of about $10 billion, and we’re now claiming early Facebook investor, co-founder of PayPal and death-denier Peter Thiel as a Kiwi too, with about $2.5b to his name.

Then there are the two billionaire Kiwi brothers, Richard and Christopher Chandler. According to legend, they converted (and grew dramatically) the family’s relatively modest wealth made from selling a chain of New Zealand department stores into significant investments in Russia, Japan, Brazil (they took a punt on state-owned telecoms operator Telebras) and the Czech Republic.

It’s the Chandlers’ Russian links that have seen the notoriously secretive Christopher Chandler thrust into the unfolding Brexit debacle. The duo, through their old investment vehicle Sovereign Global Investment, were early foreign investors in Russian gas giant Gazprom – widely understood to be controlled by Russia’s political elite (current Russian Prime Minister Dmitry Medvedev was appointed chairman in 2000, for example) and considered a political pawn of Russian President Vladimir Putin.

But the brothers’ investment in Gazprom predates Putin’s rise to power – just – and the duo have claimed (in the few media interviews they’ve done) that their investment strategy is to put money into distressed or under-performing (often state-controlled) companies in emerging markets, pressure management into improved corporate governance, then sell out once that strategy bears fruit.

Secretive New Zealand billionaire Christopher Chandler. (Legatum)

So what’s this got to do with Brexit?

After the Chandler brothers split their Sovereign fortune, Christopher set up a new fund, Legatum Capital, in 2006 in Dubai which spawned a think thank, the Legatum Institute Foundation. It’s the institute that has inserted itself into the Brexit campaign, after its researchers lobbied (effectively, it’s claimed) for a “hard Brexit” – giving up access to the European Union’s single market, when (and maybe if) Britain leaves the EU.

Brexit is, unsurprisingly, turning toxic as competing interests jostle to control what an out-of-the-EU Britain would look like. Legatum wanted to influence the action.

OK…. So where does the spying allegation come in?

Christopher Chandler’s Russian-made fortune has been attracting significant negative publicity since last year. The Mail on Sunday trumpeted in November 2017 that it had uncovered a “Russian link to Boris Johnson and Michael Gove’s successful plot to persuade Theresa May to take a tougher stance on Brexit”. It claimed Legatum’s economics director, Shanker Singham, had met Boris Johnson and Michael Gove, and had co-ordinated a letter written by them to Theresa May demanding a hard Brexit.

That negativity has now manifested as a claim made by British MP Bob Seely (under parliamentary privilege so it can’t result in legal action) that Christopher Chandler came to the attention of both Monaco’s security department and French intelligence in the 1990s for having links with Russian intelligence.

They’ve been dubbed reclusive and secretive, but the billionaire Kiwi Chandler brothers gave one in-depth interview in 2006.

Yikes. What were these “links”?

The Guardian reported that Seely claims he and four other MPs had seen documents from Monaco’s security department. These “brief, terse, factual files” related to “national security and money laundering” and included information supplied by the DST intelligence agency, France’s equivalent of MI5.

Further, he claims that “according to the French intelligence services, as recorded by their colleagues in Monaco … Mr Chandler is described as having been ‘an object of interest’ to the DST since 2002 on suspicion of working for Russian intelligence services”, and the “Monaco intelligence division had marked Chandler’s file with an S, to indicate “counter-espionage”.

But the Chandlers were involved in Russian investments together?

Seely claims the files dated from 2005 and covered a period from the mid-1990s, and concerned “Christopher Chandler and his brother”.

What does Mr Chandler say about all this?

The now Maltese citizen with an EU passport says it’s bullshit, basically. He’s never even met Putin! You can read his latest response, titled “The truth is in the national interest” on Legatum’s website. But it comes down to this, Christopher Chandler says: “I am not and never have been associated with the Russian state in any capacity. There is no evidence to support claims to the contrary.”

“As I stated before, I have never had anything to do with Russian – or any other country’s – intelligence services. If the Monaco authorities investigated this question at some point, they must have concluded the same, as they obviously never pursued the matter with me. Instead, I remained a resident in good standing in Monaco for the duration of my two decades there and for many years after I moved away.”

Russian President Vladimir Putin (L) and head of Russian gas giant Gazprom Alexei Miller (R) pay a visit to a military outpost in Nalchik on February 4, 2008. (MIKHAIL KLIMENTYEV/AFP/Getty Images)

Do we believe him?

Of course we do. We don’t have parliamentary privilege.

Legally dodgy jokes aside, the proof, as they say, is in the pudding. The “evidence” so far, as Christopher Chandler notes is, “unspecified allegations of wrongdoing… based on a discredited report from 16 years ago. These accusers have refused to release the full report to me for scrutiny. Calling for a response, while hiding the document at issue is patently dishonest. Moreover, impugning my reputation while hiding behind Parliamentary privilege shows the lack of confidence which they have in their claims.”

“Since its founding, my business has been voluntarily audited and reviewed by the world’s top firms and counterparties, and we have never had an adverse finding of any sort. In short, we have enjoyed an unbroken reputation for integrity, for over thirty years. Were this not true, those promoting the current fabrications would have delighted in exposing any shortcomings. They have found none. We have no skeletons in our closet.”

AND, the new Maltese citizen says he has never even taken a public stance on Brexit! “Many in the media and these MPs suggest otherwise, but I challenge them to point to one example of any statement by me one way or the other on Brexit. They can not. Regardless of this truth, they seek to make me an emblem of Brexit and then as with all others they perceive as enemies, discredit me in their quest to reverse the decision of the British electorate.”

And he’s right; using parliamentary privilege to make such damaging claims is pretty weak-sauce when you know you’d get destroyed and probably reduced to pauper status if you even whispered it outside of Parliament’s hallowed halls. It also shows the road to Brexit (or not) is going to be painful, personal, and vicious.

And look, we may not like private individuals making a literal fortune off the privatisation of state assets, but making a killing from the privatisation of state assets is practically the New Zealand way. Faye Richwhite or Brierley’s anyone?

Keep going!
The Lorson family and EarthSavvy products (Photo: Supplied)
The Lorson family and EarthSavvy products (Photo: Supplied)

BusinessMay 4, 2018

The waste-busting business that wants to help you reduce household rubbish

The Lorson family and EarthSavvy products (Photo: Supplied)
The Lorson family and EarthSavvy products (Photo: Supplied)

Every week on The Primer we ask a local business or product to introduce themselves in eight simple takes. This week we talk to Kristy Lorson, the founder of popular Facebook group Zero Waste in NZ! about her latest business venture, EarthSavvy.

ONE: How did EarthSavvy start and what was the inspiration behind it?

We all like to think of ourselves as being ‘greenies’ and I’ve always tried to tread lightly on the planet. But to be honest, I’m not sure I’ve always been that effective. When it comes to big environmental issues, I’ve mostly felt pretty helpless and appalled by our society’s lack of action.

After my daughter appeared on the scene, I did my best to be a ‘green mum’ with cloth nappies and homemade baby food, but it wasn’t until I happened upon a book called Zero Waste Home by Bea Johnson that the lightbulb went off. I finally understood how I was connected to the problem of overconsumption and how I could be part of the solution. So I began to transform our household, replacing nasty old disposable products with sustainable reusable alternatives.

Our family (myself, my husband and our daughter who’s now five) used to throw out a standard-sized rubbish bag once a fortnight. Now, it takes us nearly two years to fill a wheelie bin. When I first started to reduce our waste, I found it a bit time-consuming and expensive to gather the resources to help to make this lifestyle possible. So I thought: ‘Wouldn’t it be great if that process was streamlined in the form of a helpful, well-priced. one-stop zero waste shop?’ Enter EarthSavvy, named after my daughter (Savana, or Savvy to her friends).

TWO: Did you have any interest/experience in business or entrepreneurship prior to starting EarthSavvy?

None! The entrepreneurial world is a completely new experience for me.  It’s been a huge learning curve so far and I’m thoroughly relishing the challenge. The reason I started EarthSavvy was not out of some burning desire to be an entrepreneur (although it is a pretty exciting adventure and it’s great to be my own boss). It’s awfully cheesy, but I just want to make the world a better place for my daughter and her friends.

Kristy and Davian Lorson with their five-year-old daughter Savana holding one month’s worth of the family’s rubbish (Photo: earthsavvy.co.nz)

THREE: What sort of products does EarthSavvy offer and what sort of materials are they made out of?

Most household waste comes from the kitchen, so that’s where we’ve focused our product range to begin with. We’re launching with ‘zero waste survival kits’ containing reusable produce bags, bulk food bags, cotton cleaning cloths, folding stainless steel cutlery sets and an EarthSavvy badge, all bundled up in your choice of a stainless steel lunchbox or an organic cotton tote bag. The products are also available for purchase separately. EarthSavvy products are made from materials that are either recycled, biodegradable or endlessly recyclable.

FOUR:  A lot of the products EarthSavvy offers are similar to everyday products people have at home but maybe don’t bother to use for waste reduction purposes. Why do you think EarthSavvy products help to encourage a zero-waste lifestyle more so than regular tote bags, lunchboxes etc?

If you already have these products at home, you don’t need to go out and buy anything new. The whole point of zero waste living is to conserve resources. Use what you have! However, if you’re in need of tools to help you reduce your waste, EarthSavvy is here to help. I did a huge amount of research to find products that were good quality, purpose-built and would make it easier to live this lifestyle. Lots of thought has been put into what materials we use and making sure we strike a balance between sustainability and affordability.

In order for the zero waste movement to grow, we need to make sure that it’s achievable for everyday New Zealanders. For example, with our reusable produce bags and bulk food bags, we’ve opted to use rPET (recycled plastic bottles) as we want people to be able to take them supermarket shopping without adding extra cost to their grocery bill for the weight of their bags. We’ve been living this lifestyle for over three years now and have a fair idea of what works and what doesn’t, and the items that we stock are ones that we use daily in our own lives.  Every product in the EarthSavvy range is there because it will reduce waste, not just greenwash your life or make your house pretty.

EarthSavvy Zero Waste Survival Kit. All products are made from materials that are either recycled, biodegradable or endlessly recyclable (earthsavvy.co.nz)

FIVE: You’ve mentioned that you and your family take nearly two years to fill up a wheelie bin. What would be your advice to people who also want to dramatically reduce their waste footprint?

A good place to start is to look in your bin to see what your biggest waste items are, or you might find it helpful to make a list of consumable items that you purchase before starting to look for zero waste alternatives (you may discover that many of your usual purchases can be eliminated altogether). If you need something, ask yourself whether it’s possible to use what you already have or borrow from someone else. If it’s something that you need to buy, opt for good quality secondhand products if possible and choose materials that are either biodegradable, endlessly recyclable or made of recycled materials (plastic can only be recycled a few times so it’s a good one to steer clear of). There are lots of fantastic resources available, from books to websites and YouTube videos.  Here’s a list to get you started. You might also like to check out our handy zero waste room-by-room guide and join the 15,000+ Kiwis in our Facebook group, Zero Waste in NZ!

SIX: What do you think is the biggest waste-related issue in New Zealand today and what would be your solution to combatting it?

I think New Zealand’s biggest issues relate to our overconsumption and disposable culture. We’ve been sucked into this crazy idea that we need all of this stuff to make us happy, but there are plenty of studies that show that our stuff is not making us any happier. We’re consuming resources at a rate that our planet just can’t sustain. New Zealand was recently named the most wasteful country in the developed world (per capita) which is a far cry from the 100% pure, clean, green brand that we promote ourselves as.

Quite simply, we can’t continue to plunder the earth, fuel climate change and leave a trail of waste behind for future generations to deal with. We have to leave our disposable culture behind. The good news is that for pretty much every product you can think of, there’s a money-saving, planet-saving, reusable alternative. Living zero waste doesn’t require any major sacrifices. It’s actually an incredibly satisfying creative challenge that reconnects us to the planet and each other.

“Every product in the EarthSavvy range is there because it will reduce waste, not just greenwash your life or make your house pretty.” (Facebook/EarthSavvy)

SEVEN: Do you have any other plans to scale/grow further and if so, what are they?

We’re planning to offer more products in the future, but the aim is to keep the range pretty tight and focused on reusables that will reduce waste. We’re also super keen to do more in the education sector and continue providing zero waste workshops to people around the Auckland region.

EIGHT: Lastly, tell us about a start-up or business that you really admire right now.

There are so many great social enterprises – it’s hard to pick just one! I do love the work MyCup is doing at the moment though, with their ‘buy one give one’ initiative. They provide free menstrual cups to community organisations who then distribute the cups to people in need. How awesome is that?


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