Peters seeks Govt audit of Fuji Xerox

NZ First has called on the Government to ensure taxpayers are not being ripped off after it was revealed accounting irregularities at Fuji Xerox will cause losses of $285 million for the company.

Japan-based FujiFilm Holdings has set up an independent investigation committee to review accounting practices at Fuji Xerox New Zealand (FXNZ).

These related to sales leasing transactions at the New Zealand office products subsidiary in or before 2015.

NZ First began putting pressure on the Government and former Economic Development Minister Steven Joyce about the company in October. Joyce said NZ First leader Winston Peters ‘‘completely misunderstands’’ the case.

Peters said last year his inquiries into the office products firm had revealed serious concerns.

On Friday, he said the news of an internal investigation at Fuji Xerox meant the Government had no choice but to call in the Audit Office to ensure taxpayers were not being ripped off.

He had written to the auditor general in October requesting the same thing.

‘‘At stake is something very serious because our inquiries reveal such serious concerns with Fuji Xerox that it could involve corruption.

‘‘It now seems that the parent company in Japan suspects the same thing because we all know what ‘accounting irregularities’ is really short code for.’’

Fuji Xerox has previously declined to comment on Peters’ corruption claims, but Peters said Fuji Xerox had been favoured by the Government.

Documents provided by NZ First said last year, Fuji Xerox were awarded contracts worth $13.5m, while competitors Ricoh received $12.4m, Konica Minolta $8.7m, and Canon $3.2m.

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.

‘‘The more money it lost, $51m last year alone, the more Government contracts that were thrown its way,’’ Peters said.

‘‘Since minister Joyce was in the seat at the time, the buck stops with him.’’

A Fuji Xerox spokesman said on Friday it welcomed the investigation and was co-operating fully.

The company had the full support of its immediate shareholder, Fuji Xerox Asia Pacific, and was meeting all its contractual commitments.

‘‘This investigation has no impact on the current levels of service we offer our customers in New Zealand.’’