Former Open Country Dairy executive sentenced to home detention
A former Open Country Dairy Limited (OCD) group market manager has been sentenced to 12 months home detention for receiving nearly $320,000 in kickbacks from an overseas customer in exchange for advice, assistance and information in relation to the sale of dairy products.
Simon Stewart, in July this year, pleaded guilty to one charge of accepting a gift by an agent under section 4 of the Secret Commissions Act 1910, brought by the Serious Fraud Office.
He was sentenced at the Manukau District Court yesterday, and ordered to pay OCD $250,000 in reparation.
Mr Stewart had provided advice and commercially sensitive price information to OCD’s Indonesian-based customer, PT. Anta Tirta Kirana (Anta Tirta) in return for financial payments.
He received 27 bank payments from Anta Tirta totaling $276,668 between 1 April 2019 and 10 October 2023. The payments ranged from $6,980 to $22,767. In addition, he received $43,000 NZD-equivalent in foreign cash.
“The dairy industry is a vital part of the New Zealand economy, and Mr Stewart’s conduct had the potential to undermine confidence in this important sector,” SFO director Karen Chang says.
“It is essential that those who engage in corrupt practices are held to account, particularly when their actions risk impacting the integrity and reputation of a key sector.”
“This case is also a good reminder that corruption is not limited to the public sector. It can occur in any sector and any industry. The SFO plays a crucial role in detecting, investigating and prosecuting serious fraud and corruption, including corporate offending that threatens New Zealand’s key trade-related industries. Our work helps maintain confidence in New Zealand as a trusted place to do business and invest.”
Primarily owned by the Talley’s Food Group, OCD is New Zealand’s second-largest milk processor and the world’s second-largest exporter of whole milk powder.
The SFO acknowledges OCD for referring the matter in December 2023, following its internal investigation and for its cooperation during the SFO investigation.