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Wednesday, October 29, 2014

Other Companies Sucked Into Tesco Black Hole

The fallout from Tesco's £263M continues unabated, as some of the world’s largest consumer goods companies have woken up to the fact that it may impact their results and integrity. As such, companies such as Unilever, Proctor & Gamble and Coca-Cola have brought in auditors to check their UK operations.

The Telegraph notes that a source close to the probe said that Tesco had booked supplier contributions that were conditional on hitting sales targets that it was not going to reach.

They claimed that a “small group” of employees, realising these sales targets would not be hit, struck deals with suppliers to still make these payments by offering benefits in the next financial period. These benefits were then kept secret.

That would count as fraud both within Tesco and the supplier that agreed to the arrangement.

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