Fuji Xerox New Zealand is facing multiple investigations covering the years former Australia CEO Neil Whittaker was in charge, as parent company Fujifilm reveals it has discovered losses totalling a whopping Yen22bn (A$262m).
Fujifilm is appointing an independent body to investigate the period including and prior to 2015, and in particular the sales leasing arrangements. It has also taken the unusual step of postponing the publication of its 2017 financial report, which was due April 27.
At the same time a New Zealand MP is calling for a government audit, over deals done by the company with government departments.
And to add to the mix the New Zealand Serious Fraud Office has said it may get involved if new information comes to light.
After transferring from New Zealand two years ago Whittaker was running Fuji Xerox Australia until last May, when he departed abruptly, along with his top salesman Dean Murray, who had also come over from New Zealand. He left following an unannounced audit by the regional headquarters in Singapore.
[Related: Fuji Xerox replaces departed Neil Whittaker]
There is currently a large exodus of staff at Fuji Xerox Australia, well known print identities who have gone include former national sales manager Mick Gillis, while Mark Brown, who was product marketing manager, is now working for Konica Minolta, as is long time staffer Sue Threlfo who was working as a sales manager for Fuji Xerox, and so is Victorian staffer Anthony Jackson. Aline Schneider, industry marketing manager has also left.
Higher up the business two of Fuji Xerox Australia’s officeholders, finance controller Rick Schojer and company secretary Lincoln Glendining, have recently ceased their roles. In addition executive general manager of global services, Anthony Cogswell has left after more than two decades with the company, while chief people officer Beth Winchester has also resigned.
Across the Tasman NZ politician Winston Peters, leader of the New Zealand First party has called for a government inquiry into Fuji Xerox NZ following the company announcing its independent investigation committee.
Peters has highlighted irregularities with multiple government contracts awarded to Fuji Xerox NZ. Speaking to the New Zealand Herald he says, “At stake is something very serious because our inquiries reveal serious concerns with Fuji Xerox.
“It now seems that the parent company in Japan suspects the same thing because we all know what ‘accounting irregularities’ is code for.
“Take the Northland Schools Cluster for example. It has transpired that since signing up, there is a monthly standing charge per machine, schools were signed up to print volumes far in excess of what they previously used, and the contract term is an irregular 84-months.
“Experts say equipment like this should be replaced at 36-months as opposed to what will be old machines well past any depreciation point.”
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