Corruption charges, millions in kickbacks: Former IT contractor pleads guilty days before trial due to start

A former IT contractor has admitted getting more than $4 million in kickbacks shortly before he was due to go on trial for corruption charges.

The Serious Fraud Office (SFO) said the man pleaded guilty to receiving over $4m in kickbacks in the bribery and corruption case.

A trial was due to begin in the Auckland High Court on November 4 but will not go ahead after the man pleaded guilty yesterday.

The SFO said he pleaded guilty to two representative charges of accepting gifts to an agent.

He admitted receiving the kickbacks in return for favouring the awarding of work to the first contractor – a man who admitted last month to paying kickbacks of approximately $4.1m in exchange for receiving work.

The first contractor admitted two corruption charges on September 6.

The SFO said both men were Australian citizens. Both currently have name suppression.

Between late 2013 and mid-2017, the contractor who paid the kickbacks received contracts of more than $20m 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,” the SFO added.

“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,” SFO director Karen Chang said.

“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 two men will next appear in court on December 4.

The first contractor was arraigned on two charges last month but another 30 charges were withdrawn.

He was allowed to return to Australia on bail but Justice Simon Moore told him to return to Auckland for his next hearing.