Business
Three former Tesco execs pressured staff 'to cook books'
The senior executives were “cooking the books" to support Tesco’s share price and secure huge compensation packages, and “bullied and coerced" subordinates into compliance, Reuters cited lead prosecutor Sasha Wass as telling London’s Southwark Crown Court on Friday.
Christopher Bush, 51, who was managing director of Tesco UK; Carl Rogberg, 50, who was UK finance director; and John Scouler, 49, who was UK food commercial director, all deny charges of fraud and false accounting.
The charges follow Tesco’s announcement in 2014 that its profit forecast had been overstated - a statement that saw its shares tumble and plunged the company into the worst crisis in its near 100-year history. The company suspended eight senior members of staff, including Bush, Rogberg and Scouler.
Wass told the jury the case centred on two statements made by Tesco to the stock market in 2014. In the first, the firm published a trading update on Aug. 29 in which it downgraded its financial guidance. In the second, on Sept. 22, Tesco said it had found a GBP 250 million over-statement of its expected profit, mainly due to booking commercial deals with suppliers too early.
The trial is expected to last until Christmas.
Christopher Bush, 51, who was managing director of Tesco UK; Carl Rogberg, 50, who was UK finance director; and John Scouler, 49, who was UK food commercial director, all deny charges of fraud and false accounting.
The charges follow Tesco’s announcement in 2014 that its profit forecast had been overstated - a statement that saw its shares tumble and plunged the company into the worst crisis in its near 100-year history. The company suspended eight senior members of staff, including Bush, Rogberg and Scouler.
Wass told the jury the case centred on two statements made by Tesco to the stock market in 2014. In the first, the firm published a trading update on Aug. 29 in which it downgraded its financial guidance. In the second, on Sept. 22, Tesco said it had found a GBP 250 million over-statement of its expected profit, mainly due to booking commercial deals with suppliers too early.
The trial is expected to last until Christmas.
