Second IT contractor pleads guilty to receiving $4.1 million in kickbacks

A former IT contractor has pleaded guilty to receiving over $4 million in kickbacks in a Serious Fraud Office (SFO) bribery and corruption case. A trial, now not needed, was due to begin in the Auckland High Court on 4 November.

The plea was made in the Auckland High Court with the former contractor pleading guilty to two representative charges of accepting 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 pleaded guilty in September to paying kickbacks of approximately $4.1 million in exchange for receiving work. The other contractor has now pleaded guilty to receiving the kickbacks in return for favouring the awarding of work to the first contractor.

The contractor guilty of receiving kickbacks was an IT contractor at a large New Zealand-based company. As part of their role, they had authority to employ other IT contractors.

Between November 2013 and June 2017, the contractor who paid the kickbacks received contracts of more than $20 million of work on the recommendation of the contractor who received the kickbacks. The two contractors had a prior relationship before they worked for the New Zealand-based company.

SFO Director Karen Chang says, “The second guilty plea is a key milestone in the SFO’s prosecution of this case and illustrates the severe harm that arises when someone abuses their position of trust for personal gain. Participating in schemes that involve bribery and corruption undermines the integrity of New Zealand’s business sector but also erodes public confidence in fair business practices.”

“The SFO is determined to hold individuals accountable who undermine New Zealand’s values of transparency and fairness and ensuring that those who engage in corrupt practices face the consequences.”

The next appearance in court of the guilty parties will be in the Auckland High Court on 4 December 2024.