Economy

'Voluntary suspension' for Fuji Xerox no longer voluntary

'Voluntary suspension' for Fuji Xerox no longer voluntary”

Fallout from its accounting scandal is continuing for Fuji Xerox.

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.

The ministry (MBIE) said it had "formally suspended" Fuji Xerox from supplying printers and copiers to public sector agencies and ended a contract under which it could supply other office supplies. FXNZ has the full resources and capabilities to meet all current needs, and there will be no disruption to eligible agencies who are already receiving products and services from FXNZ under the AoG contracts.

Some 93 agencies are customers of Fuji Xerox through the all-of-government contracts.

"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 company would still be required to meet its existing contractual obligations to customers, he said. That suspension was to allow MBIE time to study the implications of a report from the Independent Investigation Committee established by Fuji Xerox's parent, FUJIFILM Holdings, into an global accounting scandal which originated at the New Zealand subsidiary. The review into this report has now resulted in a formal suspension being applied.

Three weeks ago the ministry said it would put off making a final decision on whether Fuji Xerox meets the suitable criteria for contracted services until after the election because it needed time to consider the full implications of the independent report on the accounting scandal that has cost its Japanese parent almost $500 million.

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

"MBIE has given Fuji Xerox NZ clarity on what is required for us to achieve this as well as their requirements to lift the suspension".

MBIE said Mr Thomas left the government department two months after Fuji Xerox's appointment to the all-of-government office supplies panel and had no role in the process for decision-making of that.

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



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