Simon Stewart sentenced to home detention for $320,000 dairy industry kickbacks

What happened

Simon Stewart, group market manager at Open Country Dairy, has been sentenced to 12 months home detention after admitting to accepting nearly $320,000 in kickbacks from Indonesian customer Anta Tirta Kirana in exchange for commercially sensitive information. He received 27 bank transfers between April 2019 and October 2023, ranging from $6,980 to $22,767 each, and also received the equivalent of $43,000 in foreign cash. At Manukau District Court on Thursday, he pleaded guilty to one charge of accepting a gift by an agent under the Secret Commissions Act and was ordered to pay $250,000 in reparation to his former employer. The information he provided related to pricing and sales negotiations. Open Country Dairy, New Zealand's second-largest milk processor and the world's second-largest whole milk powder exporter, reported the matter to the Serious Fraud Office in December 2023 following an internal investigation.

Why it matters

This case continues a pattern of fraud and corruption prosecutions highlighted by the Inland Revenue Department's compliance crackdown. Since late August, authorities have pursued cases ranging from fraudulent tax refunds and GST claims to substantive tax evasion by individuals and couples, with sentences progressing from home detention to lengthy prison terms. Stewart's conviction adds a corruption dimension, showing that serious fraud extends beyond tax evasion to include bribery of corporate officers in a critical export industry.

Follow the whole thread: Inland Revenue tax compliance crackdown

Key facts

• Simon Stewart, Open Country Dairy group market manager, sentenced Thursday at Manukau District Court
• Nearly $320,000 received in kickbacks over 27 bank transfers from April 2019 to October 2023
• Ordered to pay $250,000 reparation to Open Country Dairy
• Admitted to providing commercially sensitive price information to Indonesian customer Anta Tirta Kirana

Primary source: Secret Commissions Act

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Coverage across the news outlets we track, as at publication.

Where the outlets differ

1News provides the most detail, naming the Indonesian customer Anta Tirta Kirana and specifying the range of individual transfers ($6,980 to $22,767) and the separate cash component ($43,000 equivalent). RNZ and Stuff focus more on the Serious Fraud Office's statement about corruption risks to the dairy industry, while 1News emphasises Stewart's role and the specific information he disclosed about pricing and negotiations.

What outlets are saying