The ship, formerly owned by imprisoned fraud Michael Swann, is held by the Crown under the Proceeds of Crimes Act.
The Crown Law Office had no comment to make on the reason for the ship's trip on Otago Harbour yesterday - its second excursion in the past six weeks.
However, the Otago Daily Times has been told by two sources the ship is destined for Fiji's Lau group of islands, where it will be used to carry passengers and cargo.
It is understood a Fijian pilot is due to arrive in Dunedin next week to supervise the voyage.
The Lau group consists of about 30 inhabited islands, with a population totalling almost 11,000, and about 70 uninhabited islands.
Half a dozen Dunedin-based engineers disembarked when the ship arrived back at the Birch St wharf after its trip to Taiaroa Head.
Three Fijians remained on board and declined a request for an interview.
Swann was sentenced in March this year to nine years and six months' jail, with a minimum non-parole of four years and six months, for defrauding the board of $16.9 million.
He has appealed his sentence and has indicated he is considering an appeal against his conviction.
How an appeal would affect the Crown's disposal of his assets, including cars, real estate and other boats, is unclear.
The ODT has been told the Crown might not be able to dispose of Swann's assets until after his appeal has been dealt with.
The 50m ship's 13 cabins were fitted out in Dunedin in 2006 and it was described then as a well-appointed, ocean-going motor yacht.
It is understood television sets and other fittings have now been removed.
The ship, built in 1963, is still being advertised for sale as "a piece of Pacific maritime history".
An engineer who has been on board said yesterday it was in "good nick" for its age.
PHOTO: GERARD O'BRIEN
