Fuji Xerox global president Hiroshi Kurihara is headed to Sydney to meet local executives in the wake of a $450 million accounting scandal uncovered at subsidiaries Fuji Xerox New Zealand (FXNZ) and Fuji Xerox Australia (FXA).
Kurihara and a team of executives from Fuji Xerox in Japan flew into New Zealand last month to install new corporate governance measures after an independent investigation found that improper accounting measures at its Australasian units had overstated revenue by ¥37 billion ($A450 million).
The investigation, ordered by parent Fujifilm, identified a corporate culture based on “sales at any cost.”
The new measures put in place at FXNZ include: tightening accounting practices for contracts, new rules regarding performance evaluation and incentives, and the reorganisation of lease business units. Improved whistleblower systems have also been introduced. FXNZ’s accounting and audit operations will be integrated into Fujifilm by September and legal departments may also be consolidated.
The New Zealand government has temporarily suspended Fuji Xerox from accepting any new government work as investigations continue into the case.
In regard to what it described as “dysfunctional organizational governance” at Fuji Xerox Australia, the independent investigation stated:
The incentive remuneration paid to some employees may have induced inappropriate accounting practices…under this kind of culture, it is believed that inappropriate accounting practices came to be carried out without giving consideration to whether it would contribute to FXAU’s revenue.
In a statement released last week, Fuji Xerox Australia maintained it had not been impacted by the suspension of government contracts in New Zealand:
The statement released by Fuji Xerox New Zealand (FXNZ) on the 26th of July is specific to the FXNZ operation and does not impact the local operations of the Fuji Xerox Australia.
Fuji Xerox Australia (FXA) maintains its commitment to the Government sector locally and will continue to service the industry, maintaining its high performance and service standards.
“We will have no plans to take action of this kind in Australia, and we are not impacted by the situation in New Zealand.” says Fuji Xerox Australia.
FX global president Kurihara – who’s also a corporate vice-president of Fujifilm - will be in Sydney for a ‘short period of time,’ according to the company, and will also meet with local media.