Fuji Xerox investigated for Government business breach

Copier company Fuji Xerox is being investigated for potentially breaching a ban on seeking new Government business.

The company is under the spotlight for inappropriate accounting worth approximately $350 million.

Newshub can reveal Fuji Xerox has just bid for business from a school, even though it agreed not to chase new Government business until October when the accounting scandal broke earlier this year.

At a Northland principal's conference, Fuji Xerox was a repeat sponsor, that's allowed, but organiser Principal Paul Shepherd says the company didn't tell him about the new business ban.

Mr Shephard said "The problem with the conference is that they do have access to 135 delegates and I don't know whether they did business with new people or not."

Fuji Xerox is an approved supplier for three Government contracts, having won $55 million of business in the past five years.

When inappropriate accounting worth around $350 million was revealed, the company agreed to suspend any new business.

Newshub spoke to a North Island school where the principal says a Fuji Xerox sales rep offered the school a new contract for a copier just last week.

The school contacted the Ministry of Business and Innovation and Employment and claims it was told Fuji Xerox was breaching its new business ban.

The Government won't confirm the breach but says "An issue was raised and we are investigating" and that it's "in continuing dialogue with the Ministry of Education."

Fuji Xerox claims it was dealing with a church parish aligned with the school, not the school alone, that it was "an amalgamation of office functions" between the parish and school.

The company "did not represent a breach of the voluntary suspension" but once management knew "sales and marketing discussions stopped."

Vocal critic of Fuji Xerox, Winston Peters, said National is not holding them accountable.

Mr Peter said "It's a serious concern because Mr Joyce and Mr Bridges know this shouldn't be happening but it's a cover up."

Economic Development Minister Simon Bridges won't comment while it's under investigation, but Fuji Xerox said it has not signed any new business while the suspension is in place.