Government dumps Fuji Xerox contract

Author
Newstalk ZB staff,
Section
Business,
Publish Date
Monday, 2 October 2017, 2:41PM
More than $350 million in accounting irregularities were found at the company (Photo / NZ Herald)
More than $350 million in accounting irregularities were found at the company (Photo / NZ Herald)

Fuji Xerox New Zealand has been suspended from one of its government contracts and completely dumped from another after more than $350 million in accounting irregularities were found at the company.

Japanese parent company Fujifilm in June released an independent report which revealed "inappropriate accounting" in operations in New Zealand and Australia amounting to roughly $355 million between 2011 and 2016.

The Ministry of Business, Innovation and Employment on Monday announced the company had been formally suspended from its government-wide Print Technology and Associated Services contract and terminated from the its office supplies contract.

"Effective immediately, the suspension from PTAS prevents FXNZ signing up new business with agencies - including state schools," MBIE government procurement general manager John Ivil said.

"The formal suspension will only be lifted once certain requirements are met. The details of those will not be made public."

Government agencies would now look for new office supplies providers.

About 93 state agencies currently have contracts with Fujifilm.

The company in July agreed to a suspension from taking on any new New Zealand government contracts.

Fuji Xerox's chairman Tadahito Yamamoto, deputy president Haruhiko Yoshida and two Fuji Xerox directors all resigned following the release of the independent report.

The New Zealand business has said it takes the findings "very seriously and is committed to resolving past issues and ensuring that there is no recurrence".

The report described evidence of a "sales at any cost" culture at the company, and said concerns had been raised about possible fraud.

The Serious Fraud Office last year said it would not be pursuing an investigation into the company, but after the report's release said it was looking at additional information.

Meanwhile, sacked Fuji Xerox New Zealand managing director Gavin Pollard says he's been made a scapegoat by the Japanese parent over the unit's dodgy accounting and has launched a legal challenge to get his job back.

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