By Cass Mason of Newsroom
Mikhail Khimich was one of New Zealand's wealthiest and most high-profile part-time residents, who left the iconic Waiwera Thermal Pools in liquidation and $5 million in debt when he abruptly disappeared. Now sources say he has died in Russia, reportedly with Covid-19.
Mikhail Khimich hosts former Auckland Mayor John Banks on his super yacht. The self-described 'billionaire' ran in high-profile circles in New Zealand. Photo: Supplied / Newsroom
Khimich, known for his ownership of the well-known Waiwera thermal pools and water brand, made a name for himself as a generous benefactor of New Zealand sport and a staple at glamorous openings and events, gaining residency in 2013.
However, the reported billionaire slipped quietly out of the country some time in 2018, stalling a drink-driving trial and leaving hundreds of thousands of dollars in donations to cycling and football unpaid, plus upwards of $5 million to other creditors.
According to a report from liquidators Staples Rodway, Waiwera Thermal also owed KiwiBank $1.29 million in unpaid loans plus upwards of $3 million to other creditors after Waiwera Water New Zealand and two sister companies, Waiwera Thermal Resort and Waiwera Global - all owned by Khimich - collapsed in early 2019.
A look inside the now abandoned Waiwera thermal pools Photo: Newsroom.co.nz
Khimich was declared bankrupt in October 2019.
Staples Rodway liquidator Jared Booth said the company had been advised of Khimich's death, which he imagined would have an impact on the management of his bankruptcy estate, since taken over by the Official Assignee.
However, the Official Assignee's office said it was not aware of Khimich's death, but said it would have no impact on the administration of his bankruptcy.
Of his outstanding debts, Khimich failed to donate $300,000 of the $1 million he pledged to the Waikato Avantidrome. Another pledge of $57,500 to NZ Football also went unpaid, prompting the organisation to threaten liquidation against Waiwera Water NZ a year before it went into liquidation.
The police, facing no further recourse, eventually dropped his drink driving charge, from 2016, after a series of no-shows. No one - including the Russian Embassy - could confirm where he had gone.
The Waiwera Thermal Resort and Spa. Photo: Google Maps
Investigations into apparently fraudulent documents he submitted to the NZ Companies Office were also dropped.
New Zealand's Honorary Consul to Ukraine and Khimich's former business partner Alexander Kirichuk told Newsroom Khimich died in Moscow on October 1 last year.
Several sources said he had already been in ill health and had then contracted Covid in hospital in Moscow.
Khimich first came to New Zealand on his super yacht Thalia in 2009, buying Waiwera's bottled water and thermal pools the same year.
Questions about his connection to Russian military intelligence arose following reports the Russian energy company he co-owned, Naftasib - a major supplier of oil and gas to the Russian military - was caught up in a US bribing scandal.
Naftasib was reported to have funnelled more than US$2 million to Washington lobbyist and insider Jack Abramoff in fees between 1997 and 2004, plus another $1 million that went to a non-profit used as a front company by someone close to US congressman Tom DeLay. The payment was intended to influence DeLay's vote on legislation that would allow the International Monetary Fund to bail out the failing Russian economy.
The scandal held up Khimich's application to buy into Waiwera, although the Overseas Investment Office eventually deemed him of "good character".
However, his connections to the Russian government continued to raise concerns here.
* This story originally appeared on Newsroom.
