A former Open Country Dairy executive is charged with receiving over $276K in kickbacks. The company, a top milk exporter, referred the case to the SFO.
NZ Dairy Executive Charged in Fraud Probe
A former dairy company executive has appeared in the Manukau District Court facing one representative charge under section 4 of the Secret Commissions Act 1910. SAMANTHA SMITH/FAIRFAX NZ

A Former Open Country Dairy Executive Faces Charges from the Serious Fraud Office Over Alleged $276K in Kickbacks, Exposing a Major Integrity Breach at a Top Global Exporter.

In a shocking development for the New Zealand dairy sector, a former executive from Open Country Dairy (OCD) has been charged by the Serious Fraud Office (SFO). Simon Stewart, who served as the group market manager, is accused of receiving more than $250,000 in secret financial kickbacks. The charge against a high-level executive at a company of this scale, which is the world’s second-largest exporter of whole milk powder, sends ripples throughout the international dairy community.

The SFO alleges that the kickbacks were part of a scheme in which Stewart provided sensitive information, including pricing details, to an Indonesian-based customer, PT Anta Tirta Kirana. As a direct result of this alleged arrangement, Stewart is said to have received 27 payments between April 2019 and October 2023, totaling an exact figure of $276,668.92. This data journalism highlights the meticulous nature of the alleged fraudulent activity and the financial scale of the case.

A key detail from the investigation is that it was Open Country Dairy itself that initiated the complaint. The company, which is primarily owned by the Talley’s Food Group, referred the case to the SFO following its own internal investigation. This move demonstrates the company’s commitment to corporate governance and its proactive stance against corruption within its own ranks, despite the potential reputational damage.

The legal proceedings are now underway, with Stewart having already appeared in the Manukau District Court to face a representative charge under the Secret Commissions Act 1910. The article notes that he is scheduled to reappear in court in October. The outcome of this case will be closely watched by the entire agribusiness industry, as it will set a precedent for accountability in high-stakes corporate roles.

This incident serves as a crucial case study for global dairy economics, highlighting the vulnerabilities that can exist even within major multinational organizations. It underscores the importance of robust internal controls, strict ethical standards, and proactive governance in maintaining market integrity and protecting against financial malfeasance. The event is a stark reminder that in a competitive market, vigilance is required at every level to prevent corporate fraud.

Source: Stuff, “Former dairy executive charged by Serious Fraud Office over alleged $276k in kickbacks

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