Three more directors suspended as Tesco scandal inquiry continues 

Three more Tesco directors were suspended yesterday as part of the £250m accountancy scandal at the UK’s biggest supermarket.

Dan Jago, director of beers and wines, William Linnane, director of impulse purchases, and Sean McCurley, director of convenience, were all asked to step aside.

Tesco has now suspended eight directors and executives as Deloitte accountants and Freshfields lawyers pore over thousands of emails to work out how an extra £250m was added to Tesco’s profits. The Financial Conduct Authority is also keeping a close eye on proceedings and is understood to be liaising with the internal investigators.

The latest trio to be suspended were responsible for negotiating deals with some of the biggest suppliers in the world, including Diageo, InBev, Cadbury’s, Mars and Nestlé.

Tesco has so far confirmed that the accounting irregularities were due to the commercial department booking huge supplier payments into the wrong accountancy period.

Tesco said: “We have asked three employees to step aside to facilitate the investigation into the potential overstatement of profits in UK food for the first half of the year.”

The scandal, which unfolded last month, has already resulted in the suspensions of Chris Bush, UK chief executive; Carl Rogberg, UK finance director; Kevin Grace, commercial director; John Scouler, food commercial director; and Matt Simister, head of sourcing.

The investigation is expected to last several more weeks and is unlikely to be finished before next week’s delayed financial results from the supermarket.

 

Source: independent- Three more directors suspended as Tesco scandal inquiry continues

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