Optimus Group is defending its business structure and interactions with the New Zealand Transport Agency (NZTA).
A story published on Newsroom.co.nz questions Optimus Group’s influence on the used import vehicle supply chain, because it owns inspection company JEVIC, wholesale importer Nichibo and vehicle tester VINZ.
The story suggests NZTA was unaware about which companies Optimus owned for a year. NZTA issued Optimus Group with a warning in August.
However, VINZ chief executive Gordon Shaw told AutoTalk in a statement that an NZTA letter to VINZ and JEVIC NZ confirmed the agency was satisfied that no actual conflict of interest arose.
Shaw says the letter also noted the outcomes of inspections were never improperly influenced and that public safety was never compromised.
“VINZ and JEVIC NZ are part of the inspection division of Optimus Group. We inspect vehicles.
“Neither company imports cars. Our market volumes are commercially sensitive. We are independent operationally and in governance from other operating companies in the group.”
VINZ and JEVIC both have a full conflict of interest (COI) management plan in place, Shaw says.
“Staff employment agreements include confidentiality requirements and make it incumbent on staff to report any attempts or perceived attempts to influence the outcome of an inspection.
“The inspection companies can demonstrate the effective management of conflicts of interest with comprehensive data in the form of comparative rates of completion of inspection and rejection of vehicles together with analysis of reasons for rejection.”
They also have documentation of all meetings and contacts by external parties with inspectorate staff, he says.
When Optimus Group’s sharemarket listing was announced last year, Jevic president and Optimus director Damon Jackson told AutoTalk the individual firms would maintain their independence, particularly the compliance components of the business.
“We have gone to ensure the independence of the inspection group, including maintaining our accreditation with the ISO,” Jackson said at the time.
New Zealand Transport Agency chief executive Fergus Gammie says that existing policies regarding conflicts of interest have been identified by the NZ Transport Agency Board as an area of serious concern.
“The board has unanimously agreed that the policies need to change and has tasked the transport agency management team with implementing a new approach, noting that conflicts of interest are unacceptable in modern business practice.
“The issues relating to JEVIC and VINZ are serious issues, reflected in the formal warnings issued by the transport agency in August of this year, and the transport agency continues to monitor the situation closely.
“The transport agency is currently carrying out a thorough review of all policies relating to conflicts of interest to establish what changes are required to prevent similar situations from occurring.”
