Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Fuji Xerox and all-of-government contracts

Fuji Xerox and all-of-government contracts

10 July 2017: On 11 May 2017, the Auditor-General received a request from Rt Hon Winston Peters to look into Fuji Xerox and all-of-government contracts. This is our response.

Rt Hon Winston Peters
Member of Parliament for Northland
Parliament Buildings

By email: winston.peters@parliament.govt.nz

Dear Mr Peters


Thank you for your letter dated 11 May 2017 about All-of-Government contracts and financial irregularities at Fuji Xerox.

I understand you are concerned that:

• the purported irregularities at Fuji Xerox New Zealand amount to fraud; and

• it is therefore a concern that the Crown has All-of-Government contracts with Fuji Xerox, managed by the Ministry of Business, Innovation and Employment (MBIE).

In light of those concerns, you have asked this Office to look behind the figures.

The Auditor-General’s mandate

As you will be aware, the Auditor-General’s mandate covers public entities as provided in the Public Audit Act 2001. Fuji Xerox, not being a public entity, is outside that mandate. As such, we have no mandate to audit the accounts of Fuji Xerox, or formally consider any financial irregularities in those accounts about which its parent company in Japan may be concerned. Fuji Xerox is responsible for reporting the income, profit and losses from its operations, and is accountable to its parent company for those amounts.

However, the Auditor-General can and does look at the relationships between private entities and the Crown. This includes whether contracts entered into by the Crown deliver the services as contracted and are demonstrating value for money.

All-of-Government contracts

In this particular situation, we have been considering the All-of-Government relationship between the Crown and Fuji Xerox and what action we might usefully take at this time.

As recently reported in the media, the Minister for Economic Development has asked the Chief Executive of MBIE to review the All-of-Government contracts with Fuji Xerox. We have met and had discussions with officials from MBIE about the steps it is taking to review the All-of-Government arrangements with Fuji Xerox, and the areas on which its review work might focus. We are liaising with officials about that work and have told them that we intend to actively monitor MBIE’s consideration of the arrangements. We will consider what action we intend to take once we have considered the results of the work that MBIE is doing.

Our future work programme

We can also look more broadly at how a public entity is procuring services across a sector, such as All-of-Government procurement panels established by MBIE and used by public sector organisations. As we have indicated in our Annual Plan for 2017/18, we have work such as this planned for 2018/19. As part of our on-going work, we evaluate whether it is appropriate to carry out particular work earlier than planned. Given the concerns raised about All-of-Government procurement, we are considering which parts of that planned review of procurement might be carried out in 2017/18.

A copy of this letter is being sent to the Acting Chief Executive of MBIE. Given the recent publicity about this issue, we intend to publish this letter on our website.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Life And Times Of Peter Dunne

In the end, Mr Pragmatic calmly read the signs of impending defeat and went out on his own terms. You could use any number of clichés to describe Peter Dunne’s exit from Parliament.

The unkind might talk of sinking ships, others could be more reminded of a loaded revolver left on the desk by his Cabinet colleagues as they closed the door behind them, now that the polls in Ohariu had confirmed he was no longer of much use to National. More>>


Gordon Campbell: On Labour’s Campaign Launch

One of the key motifs of Ardern’s speech was her repeated use of the phrase – “Now, what?” Cleverly, that looks like being Labour’s response to National’s ‘steady as it goes’ warning against not putting the economic ‘gains’ at risk. More>>


Lyndon Hood: Social Welfare, Explained

Speaking as someone who has seen better times and nowadays mostly operates by being really annoying and humiliating to deal with, I have some fellow feeling with the current system, so I’ll take this chance to set a few things straight.. More>>


Deregistered: Independent Board Decision On Family First

The Board considers that Family First has a purpose to promote its own particular views about marriage and the traditional family that cannot be determined to be for the public benefit in a way previously accepted as charitable... More>>


Transport Policies: Nats' New $10.5bn Roads Of National Significance

National is committing to the next generation of Roads of National Significance, National Party Transport Spokesperson Simon Bridges says. More>>


Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>


Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>


Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>





Featured InfoPages

Opening the Election