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Dairy giant Fonterra Cooperative Group says it has suspended, without pay, one of its executives who was last week charged by the Serious Fraud Office with conspiracy to defraud.
Seven people, including the Fonterra staffer, have been charged in the wake of a scandal over the alleged illegal export of $50
million of milk powder.
SFO director David Bradshaw has confirmed that the seven people were charged last week with conspiracy to defraud.
Each of the seven had name suppression when they appeared in Auckland District Court.
The SFO launched its investigation into Powdergate 18 months ago after the Ministry of Agriculture and Forestry had investigated allegations by the then Dairy Board.
Board chief executive Warren Larsen blew the whistle on export breaches in 2001 after discovering milk powder overseas that had not been exported through the board, which at the time had an export monopoly.
The board was rolled into the industry mega-merger that created New Zealand's biggest company, Fonterra, that year.
An investigation by Fonterra, which hired former detective John Hughes, found there had been breaches of export rules in 2000 and 2001, but it put them down to over-zealous employees and said it found no evidence of improper personal gain.
Today, Fonterra chief executive Andrew Ferrier said only one of the seven people charged was currently working for Fonterra.
"Fonterra is focused on the future, and this matter is firmly rooted in the past," he said in a statement.
"It is appropriate that the courts are left to resolve this matter."
- NZPA
Herald Feature: Powdergate
