New Zealand Law – Second IT contractor pleads guilty to $4.1 million in kickbacks

mass media

October 31, 2024

A former IT contractor has pleaded guilty to receiving more than $4 million in kickbacks in a Serious Fraud Office (SFO) bribery and corruption case. The trial, which was not required at this time, was due to begin in the High Court in Auckland on November 4.

The plea was made in the High Court in Auckland after the former contractor pleaded guilty to two grandstanding charges of receiving gifts for an agent.

In April 2023, the SFO laid charges against two former IT contractors, both of whom are Australian citizens and whose names have been temporarily withheld. In September, one contractor pleaded guilty to paying roughly $4.1 million in kickbacks in exchange for work. Another contractor has now pleaded guilty to receiving kickbacks for facilitating the transfer of work to the first contractor.

The contractor responsible for receiving the kickbacks was an IT contractor for a large New Zealand company. As part of their role, they had the right to hire other IT contractors.

Between November 2013 and June 2017, the contractor who paid the kickbacks was awarded more than $20 million in work contracts on the recommendation of the contractor who received the kickbacks. The two contractors had a previous relationship before they worked for the New Zealand company.

SFO director Karen Chung said: “The second guilty plea is a key milestone in the SFO’s prosecution of this case and illustrates the serious harm that occurs when someone abuses their trust for personal gain. Participating in schemes that involve bribery and corruption undermines the integrity of New Zealand’s business sector, but also undermines public confidence in fair business practices.”

“The SFO is determined to prosecute those who undermine New Zealand’s values ​​of transparency and integrity and to ensure that those involved in corrupt practices are held to account.”

The accused will next appear in court at the High Court in Auckland on December 4, 2024.

About SFO

The SFO is responsible for investigating and prosecuting serious or complex fraud, including bribery and corruption in New Zealand. With a focus on maintaining integrity and confidence in the financial system, the SFO has developed strategic directions to ensure it has the greatest impact on the cases it takes. They are reviewed and updated every 12-18 months.