Three Former Tesco Executives Charged Over Accounting Scandal -- Update
09 September 2016 - 2:02PM
Dow Jones News
By Saabira Chaudhuri
LONDON--The U.K.'s Serious Fraud Office has charged three former
Tesco PLC executives with false accounting and abusing their
positions, the first charges announced by the office since the
investigation began.
The SFO in October 2014 opened its criminal investigation into
Tesco after Britain's biggest grocer overstated its profit by
GBP263 million due to accounting practices that allowed for the
accelerated recognition of promotional income from suppliers, and
delayed accrual of costs, at its core U.K. food business. On
Friday, the SFO said its wider investigation into Tesco is
ongoing.
The scandal forced the resignation of Tesco's then chief
executive and chairman, throwing the company into turmoil at a time
when it was also facing increased competition from discounters, but
under new CEO Dave Lewis Tesco's performance has improved.
The SFO has charged former U.K. finance director Carl Rogberg,
former U.K. managing director Chris Bush and former U.K. food
commercial director John Scouler with one count of abuse of
position and one count of false accounting. The three men must now
appear in the Westminster Magistrates' Court on 22 September.
"Tesco continues to cooperate with the SFO's investigation,"
said a spokesman. "The last two years have seen an extensive
program of change at Tesco, but given this is an ongoing legal
matter, we are unable to provide any further comment at this
time."
The SFO was reported by U.K. media to have interviewed former
CEO Philip Clarke last year in relation to the accounting issue.
Mr. Clarke couldn't immediately be located for comment. The SFO
declined to comment.
Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com
(END) Dow Jones Newswires
September 09, 2016 07:47 ET (11:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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