Two IT contractors for Spark NZ have been sentenced to three years in prison for their roles in New Zealand’s largest private sector corruption case involving more than $4 million in kickbacks.
The Serious Fraud Office (SFO) filed charges against the IT contractors — Australian citizens Sean Bryan and Mark Lester — in April 2023.
Lester was first contracted in 2013 to advise on, manage, and oversee testing associated with a major upgrade to the customer services IT platform of Spark.
He was given more responsibility over time and promoted into a senior technology role.
Lester recommended using Bryan’s company, Victory IT Ltd, to assist with testing upgrades to the platform.
The pair knew each other outside of work but did not disclose this relationship.
Based on Lester’s recommendations, Victory IT Ltd continued receiving contracts and was paid around $20.7 million between March 2014 and June 2017.
Bryan made 32 payments totalling around $4.1 million from his company to Lester between June 2014 and May 2017.
These payments, which had no commercial basis, were made in return for Lester’s promotion of Bryan’s interest.
Bryan pleaded guilty in September 2024 to two representative charges of giving gifts to an agent, while Lester pleaded guilty in October 2024 to two representative charges of accepting gifts by an agent.
The pair were sentenced in the Auckland District Court today.
SFO director Karen Chang said this was “New Zealand’s largest ever private sector corruption case, involving a publicly listed company providing crucial services to New Zealanders”.
“It sends a clear warning about the real risks corruption poses. These risks include, harming the integrity of our business environment, reducing competition and lowering investor confidence.”
Chang said the SFO acknowledged and thanked Spark for its role in helping bring the offending to light and its assistance throughout the investigation and prosecution.
