A former dairy company executive has admitted receiving more than $250,000 in kickbacks from an overseas customer after providing confidential pricing information that influenced commercial negotiations.
Simon Stewart, a former group market manager at Open Country Dairy pleaded guilty in the Manukau District Court to one representative charge of acceptance of gift by an agent under the Secret Commissions Act 1910 following an investigation by the Serious Fraud Office.
The charge relates to Stewart providing assistance and commercially sensitive pricing information to Indonesian customer PT Anta Tirta Kirana in return for undisclosed financial payments.
The Serious Fraud Office said Stewart received 27 payments between April 1, 2019 and October 10, 2023 totalling $276,668, with individual payments ranging between $6980 and $22,767.
Open Country Dairy, primarily owned by Talley's Food Group, is the country's second-largest milk processor and the world's second largest whole milk powder exporter.
Serious Fraud Office director Karen Chang said this type of offending risked undermining confidence in one of New Zealand's most important export industries.
"Dairy is New Zealand’s largest export, and our country’s economic wellbeing is tied to the health of this industry," she said.
"Behaviour such as Mr Stewart’s undermines the trust our markets are built on. Any offending that threatens New Zealand’s reputation as a safe place to do business, particularly when linked to such a critical industry, has serious implications for our country as a whole."
Indonesian company offered payments for 'kindness'
Chang said Stewart provided information to Anta Tirta that influenced pricing negotiations and dealings with Open Country Dairy.
"They offered him payments in exchange for his ‘kindness’."
New Zealand businesses operating in overseas markets should ensure they understood and protected themselves against bribery and corruption risks, she said.
The Serious Fraud Office acknowledged Open Country Dairy referred the matter after its own internal investigation and cooperated throughout the investigation.
Stewart will be sentenced in the Manukau District Court on October 15.
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