In the latest update from scandal-wracked Xerox, the company is taking civil action against its former New Zealand-based senior executives.
In a new statement by Fuji Xerox today the office products company has revealed it is taking civil action against its former senior executives in the wake of the NZ$480 million ($354 million/ €295 million) accounting scandal which affected Xerox’s New Zealand and Australian subsidiaries.
The senior executives involved in the civil suit have not been named.
Fuji Xerox stated, “The proceedings follow investigations into the financial position of Fuji Xerox New Zealand, which identified inappropriate accounting treatment of its revenue and net profit position over an extended period of time.”
In the wake of the scandal, which first came to light in September 2016, Fujifilm, the company’s Japanese parent, conducted an investigation into Fuji Xerox’s senior management and found a “culture of concealment” according to an article by NBR, as well as a “sales at any cost” attitude.
Two of the New Zealand subsidiary’s managing directors, Neil Whittaker and Gavin Pollard, left the company, with Mr Whittaker reportedly receiving a $1 million payout, as an independent report revealed.
In June of this year Fujifilm, which owns 75 percent of Fuji Xerox, told NBR it “will consider taking actions against the individuals involved if we find any clear illegality.” When Fujifilm conducted its investigation using independent lawyers and accountants it found that “sales staff at Fuji Xerox NZ and Australia inflated revenue, and deliberately tried to conceal the inappropriate accounting treatment.”
The report of the investigation found that “financial incentives for the managing director and other top-level employees” were “one of the reasons for the inflated sales figures.”
According to NBR “a key meeting between ministry officials and industry participants will be held next Wednesday to discuss” the voluntary suspension of Fuji Xerox from accepting government work.