Assurance sought

The Government is seeking reassurances about contracts it has in place with Fuji Xerox after an accounting scandal in New Zealand and Australia caused losses of more than $350 million for the global company.

But Economic Development Minister Simon Bridges said nothing he has seen to date gives him any cause for concern.

In April, Japan-based Fujifilm Holdings said it had set up an independent investigation committee to review the appropriateness of accounting practices at Fuji Xerox New Zealand (FXNZ).

These related to certain sales leasing transactions occurring in or prior to 2015 at the New Zealand office products subsidiary, and were estimated to have caused losses worth $285m.

On Monday, Fujifilm said the headoffice review had extended to its Australian businesses and its initial estimates of the losses had increased to nearly $500m.

The committee’s full report was not yet available in English, but an outline of it released Monday night said FXNZ conducted some ‘‘inappropriate accounting’’ between 2011 and 2016.

It found the issues caused losses to shareholders equity at the parent company worth $230m in New Zealand, and $121m in Australia.

They had overstated revenue by about $473m, and as a result three executives, as well as Fuji Xerox chairman Tadahito Yamamoto, resigned, while many senior executives would take a pay cut.

NZ First leader Winston Peters said this was big news internationally and dragged the country’s name through the mud.

NZ First began putting pressure on the Government and former Economic Development Minister Steven Joyce about the company in October, which Joyce rejected and claimed Peters ‘‘completely misunderstands’’ the case.

One of Joyce’s responses to Peters’ questions last year said the company had been paid more than $55m for all-ofgovernment contracts since 2012.

Peters said taxpayers had been ripped off by these contracts going to a company with such issues.

But Bridges said he had seen ‘‘nothing to date’’ which gave him any cause for concern.

‘‘In light of the current serious matters and allegations I’ve sought reassurances from the chief executive of MBIE.’’

- Hamish Mcnicol