Bankside barrister Sam Lowery represents construction firm in Aotearoa New Zealand’s first-ever criminal prosecution for cartel conduct

A construction firm has been fined in Aotearoa New Zealand’s first-ever criminal cartel prosecution, with Bankside barrister Sam Lowery securing a reduced fine for the company, and the withdrawal of charges against the director.

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Since 2021, intentional cartel conduct has been a criminal offence in New Zealand. Individuals convicted can face up to seven years in prison or fines of up to $500,000, and companies may be fined up to $10 million.

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In early 2022, Munesh Kumar, Director of MaxBuild Limited, asked the director of firm “C” (both the director and the firm have name suppression), to submit bids on tenders that were higher than MaxBuild’s. Firm C agreed. This was a form of cover pricing that amounted to an unlawful cartel agreement.

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In December 2023, Firm C and its director were charged alongside Munesh Kumar and MaxBuild Limited. Sam Lowery acted for Firm C and its director during the Commerce Commission’s investigation and the criminal proceeding.

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MaxBuild and Mr Kumar pleaded guilty. In December 2024, Mr Kumar was sentenced to six months' community detention and 200 hours' community work, and MaxBuild was fined $500,000. At sentencing, Justice Michele Wilkinson-Smith held that Mr Kumar was the instigator of the scheme.

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In September 2025, Firm C and its director resolved the charges against them. The Commerce Commission withdrew its charges against the director and the company pleaded guilty.

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At sentencing earlier this month, Sam Lowery argued that Firm C should pay a modest fine since it was no longer trading, and being kept afloat only for the purpose of doing the right thing and paying the fine to the extent it could financially.

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Chief High Court Judge Sally Fitzgerald agreed and ordered the firm to pay a $30,000 fine instead of the $595,000 that ordinarily would have been imposed.

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In sentencing Firm C, Justice Fitzgerald noted the unusual aspect of Firm C’s offending – it did not benefit financially from the agreement and had no prospect of doing so. It was common ground that Firm C did not want to win the tenders and that the only benefit it gained was that submitting tenders preserved its relationship with the clients and the possibility of winning future work.

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Sam was instructed by MBC Law and assisted by Bankside employed barrister Monique Pitt. Bankside barrister Josh Suyker assisted at any earlier stage of proceedings.

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