Fuji Xerox has agreed to a suspension from all government contracts after more than $350 million in accounting irregularities were found at the company.
Japanese parent company Fujifilm last month released an independent report which revealed “inappropriate accounting” in operations in New Zealand and Australia amounting to roughly $355m between 2011 and 2016.
The Ministry of Business, Innovation, and Employment today said the company’s New Zealand branch had agreed to a suspension while a full report from Fujifilm into the issue is translated.
The suspension meant the company would not be able to take on any new contracts in the public sector, but would continue its current work.
It provides printer and office supply services to government agencies.
“The ministry is concerned to ensure companies who supply the Government are held to the high standards the public would expect,” the ministry said.
The suspension will be reviewed in six weeks, after the publication of Fujifilm’s report in English.
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 Auditor-General’s office last week said it was considering bringing forward a review of government procurement over the matter.
The independent 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. NZN