New Zealand fruit company confirms its is conducting a review of payment processes and intends to recover the full amount paid out
Seeka, one of New Zealand’s largest fruit companies and a major grower-distributor of products including kiwifruit and avocados, has uncovered what it describes as “a series of invoicing irregularities” that could amount to as much as NZ$350mn.
In a statement to the NZ stock exchange, the company confirmed it had investigated the alleged fraud with assistance from independent forensic accountants.
It is understood that the funds were paid out following the creation of fake third-party invoices, and that a member of staff has been dismissed in relation to the case.
The impact on this year’s earnings is estimated at NZ$200,000, although the company said it would affect its expected full-year earnings.
“There is no impact from this issue on the guidance range of the full-year earnings, at a profit before tax level in the current year which is currently between NZ$39.0mn and NZ$43.0mn.”
The issue was detected “relatively early”, it noted, and a review of all payment processes was underway to ensure that the risk of fraud is minimised.
And all relevant regulatory authorities have been notified. It added: “Seeka is pursuing full recovery, and the matter may be placed before the courts.”
