Auckland-based construction company MaxBuild and its director, Munesh Kumar, have made history as the first to face criminal sentencing under New Zealand’s cartel conduct laws.
Kumar was sentenced to six months of community detention and 200 hours of community service, while MaxBuild was fined $500,000 for alleged bid-rigging on publicly funded projects.
Justice Michele Wilkinson-Smith described the actions as “cheating the system,” adding that they undermined public trust in fair competition. While Kumar avoided imprisonment, the court emphasised deterrence in sentencing.
“This was a huge error of judgement on your par … The underlying motivations came from a good place, but the way you chose to deal with it was wrong and I think you now know that.”
The case, NZ Herald reports, brought to light by an errant email attachment, revealed alleged collusion between MaxBuild and another company to manipulate bids for two major projects—the Northern Corridor Improvement and Middlemore Railway Bridge repairs—between January and May 2022. This misconduct secured MaxBuild contracts worth $161,775 in profit.
Kumar expressed remorse, claiming the decision stemmed from intense financial pressure during Covid-19 lockdowns. He admitted his actions were “foolish” and has offered to educate others on avoiding similar mistakes.
In a statement to the media released immediately after court’s sentence was announced, Kumar said:
“I have never even considered anything like this before – it’s just not who I am. It doesn’t reflect the values or conduct of either myself or the business prior to this.”
Kumar’s lawyer Gary Hughes added:
“This is not a man who has a history of dodgy business practice in fact it is the opposite… this was a one off at a time of vulnerability and not part of the normal business practice here.”
Commerce Commission Chair Dr John Small praised the sentencing as a strong message against anti-competitive behaviour, stressing that cartel conduct harms taxpayers and the economy.
The other company involved, which remains unnamed due to court orders, has pleaded not guilty and awaits trial.
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