MBIE bars Fuji Xerox NZ from all-of-government contracts

The Ministry of Business Innovation and Employment (MBIE) has formally suspended Fuji Xerox New Zealand (FXNZ) from one all-of-government contract and terminated another, but has given no reason for the suspension.

The general manager of New Zealand Government Procurement, John Ivil, said FXNZ had been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract, effective immediately.

The suspension from the PTAS contract prevents FXNZ signing up new business with agencies, including state schools. However, FXNZ will be required to continue to meet its commitments to public sector agencies for existing agreements under the PTAS contract.

MBIE said 93 agencies were customers of FXNZ through the All-of-Government contracts.

FXNZ responded the announcement by saying it had less than one percent of the Office Supplies contract, so the impact of termination would be minimal.

The suspension follows FXNZ deciding in July to temporarily suspend new sales and marketing activities to government agencies covered by its three all-of-government contracts in July mdash; the Print Technology and Associated Services (PTAS), Print Devices, and Print Device Management Services, and Office Supplies contracts mdash;following a scathing reportfrom an independent investigation into its operations commissioned by Japanese parent, Fujifilm Holdings, that revealed serious financial misconduct at FXNZ.

The investigation’s findings precipitated the resignation of Fujifilm’s chairman and other senior figures of the parent company.

Ivil said the formal suspension would be lifted only when certain requirements, the details of which will not be made public, had been met by FXNZ.

However, FXNZ said there were no current performance issues or inability to meet service levels under existing arrangements. “FXNZ has the full resources and capabilities to meet all current needs, and there will be no disruption to eligible agencies who are already receiving products and services from FXNZ under the AoG contracts,” it said.

FXNZ managing director, Peter Thomas (promoted to the role from COO last week) said: "We remain committed to working with Government and to regaining and rebuilding trust with all of our stakeholders.

“MBIE has given FXNZ clarity on what is required for us to achieve this as well as their requirements to lift the suspension. We are taking this seriously and are committed to rebuilding our trust and long term relationship with Government."

The company said that, in his previous, Thomas had been “instrumental in driving widespread change throughout the company including establishing appropriate governance and management systems.”

Copyright © 2017 IDG Communications, Inc.

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