Former IT contractor pleads guilty to paying $4.1 million in kickbacks

A former IT contractor has pleaded guilty to paying over $4 million in kickbacks in exchange for receiving work. Photo / NZME

A former IT contractor has pleaded guilty to paying over $4 million in kickbacks in exchange for receiving work contracts worth more than $20m.

The former contractor, who has interim name suppression, is one of two people charged by the Serious Fraud Office (SFO) in a bribery and corruption case.

The plea was made in the Auckland High Court with the former contractor pleading guilty to two representative charges of giving gifts to an agent.

The second defendant, also a former IT contractor, is charged with receiving kickbacks in return for favouring the guilty party in awarding work and will go on trial in November.

That person was contracted to conduct testing of IT systems at a large New Zealand-based company. As part of their role, they also had the authority to employ contractors to perform the testing work.

Both are Australian citizens.

The SFO alleges between November 2013 and June 2017 the guilty party received contracts of more than $20m of work on the recommendation of the second defendant, paying kickbacks of approximately $4.1m in exchange for receiving the work.

The SFO alleges the two parties had a prior relationship.

“This case highlights the serious harm caused when an individual abuses their position of trust for personal gain,” SFO director Karen Chang said.

“The payment of over $4m in kickbacks not only undermines the integrity of our business sector but also erodes public confidence in the fairness of New Zealand’s business practices.

“The SFO is committed to holding those accountable who threaten the values of transparency and fairness that New Zealand is known for.”