Brockman chairman in spotlight

Iron ore aspirant Brockman Resources and the local arm of Hong Kong investment group Wah Nam International were standing yesterday by the chairman of both companies, Peter Luk, despite the revelation Mr Luk is under investigation by Hong Kong's Independent Commission Against Corruption.

While no charges have been laid against Mr Luk, Wah Nam confirmed the investigation was "initiated against Mr Luk" in his "personal capacity".

The revelations are the latest blow to the reputation of Chinese investors, who have been targeted by some Australian politicians this year over their growing ownership of local resources projects.

The foreign ownership debate has been stoked by a series of concerns over propriety, highlighted by a recent insider-trading investigation into employees of Australian-focused Chinese investment group Hanlong.

Wah Nam stressed the investigation into Mr Luk did not relate to affairs of the company, nor its subsidiaries, but concerned matters prior to Mr Luk becoming chairman.

He became chairman of Perth-based Brockman when Wah Nam completed a hostile takeover earlier this year. Mr Luk declined to clarify the nature of the investigation but a spokesman for Wah Nam said he had no intention of standing down from the chairman's role at either of the companies.

Brockman's prime asset is the Marillana iron ore deposit in the Pilbara, and both companies were adamant the project would not be affected by the investigation.