MBIE gets tough on Fuji Xerox

Fuji Xerox New Zealand has been penalised by the Ministry of Business, Innovation and Employment (MBIE) in the wake of an accounting scandal at the firm.

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.

Fuji Xerox had been one of a panel of suppliers entitled to compete for government business through ‘‘all-of-government’’ contracts that are negotiated by MBIE.

But it ‘‘voluntarily’’ suspended itself from pitching for government business in July in the wake of an accounting scandal.

There had been speculation the company was hoping for a quick rehabilitation under its newly appointed New Zealand managing director, Peter Thomas, who left MBIE for Fuji Xerox in 2015.

But MBIE’S statement appears to make that less likely.

‘‘Fuji Xerox NZ has been formally suspended from the print technology and associated services (PTAS) contract and terminated from the office supplies contract,’’ MBIE general manager of government procurement John Ivil said.

‘‘Effective immediately, the suspension from PTAS prevents Fuji Xerox NZ signing up new business with agencies including state schools.’’

He said the company would be required to meet its existing contractual obligations to customers.

Ivil indicated the suspension would be lifted if the company met ‘‘certain requirements’’ but would not say what they were.

The details of the conditions would not be made public, he said.

Thomas said Fuji Xerox NZ was committed to working with the Government ‘‘and to regaining and rebuilding trust with all of our stakeholders’’.