New Zealand First promises inquiry on FujiXerox

Winston Peters

Wellington, August 16, 2017

National Ministers have adopted “see no evil, hear no evil, speak no evil” over FujiXerox, despite taxpayers spending $70 million with the company since 2011.

We know from Deloitte’s fraud report that bonus payments at FujiXerox skyrocketed from 2011 until it imploded last year.

The Issues

This can be seen in the Government’s spend with FujiXerox shooting up 60% in the two years between 2011/12 and 2012/13. No one in government clocked $69.9 million being spent over six years, with annual spending growing from $6.4 million in 2011-2012, to $14.6 million in 2016-2017.

Staggeringly since April 21, 2017, when significant fraud was first suspected, official replies show that Ministers have done Sweet Fanny Adams. Even after June 12, 2017, when the half billion-dollar fraud at FujiXerox was revealed, Ministers have been AWOL.

Since April 3, 2017, the Minister responsible for making sure taxpayers get value for money, Simon Bridges, has received two pieces of correspondence and sent just one relating to FujiXerox.

That is at least one more than what the Minister of Education sent. Despite school sponsorship being a key selling plank used by FujiXerox, you would think the Minister would like to know what a $247 million write-down including sponsorship, now means for many schools.

Minister’s inaction

Then again, look at the Minister of Police who is meant to be in charge of the Serious Fraud Office. She did not send a single letter or email despite the SFO giving FujiXerox an all-clear last Christmas; only four months before major fraud was suspected.
This government’s motto should be ‘see no evil, hear no evil, speak no evil.’

Cracks are now seriously showing in the dark underbelly of government procurement.

New Zealand First:

Calls for a public inquiry into accounting, audit and assurance standards, the Crown Agency, External Reporting Board, and the Serious Fraud Office;

Will conduct a full inquiry into government procurement; and

Has referred a complaint regarding Fuji Xerox’s former Auditor EY (formerly Ernst & Young) to Chartered Accountants Australia New Zealand.

Taxpayer spend with FujiXerox New Zealand (07083 (2017))

Winston Peters is Member of Parliament elected from Northland and Leader of New Zealand First.