Simon Stewart, a former group market manager at Open Country Dairy, has pleaded guilty to charges of accepting secret commissions after receiving over $250,000 in kickbacks from an overseas customer. According to the Serious Fraud Office (SFO), Stewart provided confidential pricing data to the Indonesian firm PT Anta Tirta Kirana to influence commercial negotiations between 2019 and 2023.
The Mechanics of the Kickback Scheme
The investigation by the SFO revealed a systematic pattern of illicit payments. Between April 1, 2019, and October 10, 2023, Stewart received 27 separate payments from PT Anta Tirta Kirana. These transactions totaled $276,668, with individual sums ranging from $6,980 to $22,767. The SFO stated that the customer characterized these payments as compensation for Stewart’s “kindness,” which involved him leaking sensitive pricing information that directly affected the company’s export contracts.
Did you know?
The Secret Commissions Act 1910, under which Stewart was charged, is designed to prevent agents from accepting undisclosed gifts or payments that could influence their professional duties or compromise their employer’s interests.
Corporate Governance and Industry Risk
Open Country Dairy, the second-largest milk processor in New Zealand and a major player in the global whole milk powder export market, discovered the breach through its own internal investigation. The company subsequently referred the matter to the SFO and cooperated throughout the legal process. SFO Director Karen Chang emphasized that such behavior threatens New Zealand’s reputation as a secure and transparent place to conduct business.
“Dairy is New Zealand’s largest export, and our country’s economic wellbeing is tied to the health of this industry,” Chang said. She noted that the integrity of these commercial relationships is essential for maintaining trust in international markets.
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Frequently Asked Questions
What are the legal consequences for Simon Stewart?
Stewart has pleaded guilty to one representative charge of acceptance of gift by an agent. He is scheduled to be sentenced in the Manukau District Court on October 15.
How was the fraud discovered?
The fraud was uncovered following an internal investigation by Open Country Dairy. The company referred the findings to the Serious Fraud Office, which then conducted a formal investigation.
Why does this matter for the dairy industry?
According to SFO Director Karen Chang, such offenses risk undermining global confidence in New Zealand’s export sector, which is the country’s largest. Protecting the reputation of these trade relationships is considered vital for the nation’s economic health.
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