New Zealand’s Serious Fraud Office is looking into the finances of leading supplier Fuji Xerox New Zealand, according to an exclusive report in the National Business Review (NBR).
NBR says several sources have confirmed they've been contacted by fraud squad officers.
An NBR investigation into the finances of New Zealand copier company Fuji Xerox has prompted a probe by the Serious Fraud Office. Although the office won’t confirm its move, it is understood it has begun preliminary inquiries into the company’s conduct. Several NBR sources have confirmed that SFO staff have been in touch with them for initial interviews.
The probe follows claims by former Fuji Xerox staff that they believe the company has been overstating its revenue for many years. Former staff are believed to have tried to blow the whistle more than six years ago but were ignored by local management and by its regional head office in Singapore.
Their claims include allegations of the company not delivering on promises of sponsorship, over-estimating print volumes, and failing to inform them about significant penalties for terminating contracts.
Fuji Xerox NZ reported a 25% drop in revenue for the year ending March and a pre-tax loss of $51 million. The result followed years of record sales and led to the company laying off almost ten per cent of 800 staff.
In Parliament last week, NZ First party leader Winston Peters lodged several written questions about Fuji Xerox to Economic Development Minister Steven Joyce.
They ask whether Mr Joyce has received any correspondence or reports critical of the company’s involvement in government-wide procurement contracts. Such contracts are believed to make up about 40% of the copier and “document solutions” business in New Zealand, and involve more than 730 agencies, including more than 380 schools. Fuji Xerox’s rivals have questioned the process that led to the company winning many of these deals.
Fuji Xerox NZ said on Tuesday it hoped to make a comment later that day. Fuji Xerox Australia has yet to respond to a request for comment. [Update: "Fuji Xerox Australia has no comment."]
NBR earlier reported that former FX NZ MD Neil Whittaker – who led the New Zealand company for 11 years then became head of FX Australia before an abrupt exit in May – has returned to New Zealand but declined to comment.
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