Serious Fraud Office charges ex-Open Country Dairy executive over $250,000 kickbacks

Open Country Dairy is the country's second-largest milk processor. Picture / NZME

The Serious Fraud Office has charged a former Open Country Dairy executive for allegedly receiving more than $250,000 in financial kickbacks.

Simon Stewart appeared in the Manukau District Court, facing one representative charge under Section 4 of the Secret Commissions Act 1910.

The Serious Fraud Office (SFO) alleges that Stewart, who held the role of group market manager, provided information, including sensitive price information and assistance, to Open Country Dairy’s (OCD) Indonesian-based customer, PT Anta Tirta Kirana, and received “undisclosed payments” in return.

It’s alleged that between April 1, 2019 and October 10, 2023, he received 27 payments from Anta Tirta Kirana totalling $276,668.

The individual payments ranged in amounts from $6980 to $22,767.

Talley’s Group owns OCD and is the country’s second-largest milk processor. Earlier this week, it announced a deal to purchase Mataura Valley Milk from The a2 Milk Company.

The SFO acknowledged OCD for its “co-operation and assistance” and for referring the case, following its own internal investigation.

Stewart’s next appearance is in early October.

According to an Employment Relations Authority (ERA) determination from June this year, Stewart alleged he was unjustifiably dismissed from OCD.

He alleged that he was disadvantaged in his employment before his summary dismissal, due to an unjustified action or actions by OCD, and he sought reimbursement of “lost wages and compensation for hurt, humiliation and injury to feelings”.

According to that determination, Stewart began his employment as market manager in 2013, before being promoted to senior market manager in 2018 and group market manager in 2021.

In his group market manager role, which reported to chief customer officer Andrew McCutcheon, he had several employees report to him and was directly responsible for a “very large customer’s account” and two geographic territories.