A former IT contractor has pleaded guilty to paying over $4 million in kickbacks in a Serious Fraud Office (SFO) bribery and corruption case.

The plea was made in the Auckland High Court with the former contractor pleading guilty to two representative charges of giving gifts to an agent.

In April 2023, the SFO filed charges against two former IT contractors, both of whom are Australian citizens and have interim name suppression. One contractor has pleaded guilty to paying kickbacks of approximately $4.1 million in exchange for receiving work. The other was charged with receiving kickbacks in return for favouring the guilty party in awarding work.

The defendant charged with receiving kickbacks was contracted to conduct testing of IT systems at a large New Zealand-based company. As part of their role, they also had authority to employ contractors to perform the testing work.

Between November 2013 and June 2017, the guilty party received contracts of more than $20 million of work on the recommendation of the second defendant. The SFO alleges the two parties had a prior relationship.

SFO Director Karen Chang says, “This case highlights the serious harm caused when an individual abuses their position of trust for personal gain. The payment of over $4 million in kickbacks not only undermines the integrity of our business sector but also erodes public confidence in the fairness of New Zealand’s business practices. The SFO is committed to holding those accountable who threaten the values of transparency and fairness that New Zealand is known for."

The trial of the second defendant is due to begin on 4 November in the Auckland High Court. The next appearance in court of the guilty party will be in the Auckland High Court on 4 December 2024.

About the 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 trust in the financial system, the SFO has developed strategic areas of focus to ensure it has the greatest impact with the cases it takes in. These are reviewed and updated every 12-18 months.

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