Tesco probe finds evidence of inappropriate behaviour by staff
THE INVESTIGATION into Tesco’s £250m black hole is understood to have found evidence that a small group of staff deliberately misled its auditors as they struggle to meet sales targets.
The UK’s largest supermarket chain is due to report its delayed half year results on Thursday, with chief executive Dave Lewis set to update the market on the initial findings of the probe being carried out by auditor Deloitte and law firm Freshfields.
It is expected to blame the profit overstatement on “inappropriate” behaviour” by certain members of staff rather than an accounting issue.
The profit overstatement relates to the booking of commercial income from suppliers that was conditional on hitting sales targets that it was not going to reach, reports this weekend said.
Eight members of staff have been suspended so far, including UK managing director Chris Bush.
The retailer is expected to report profits of £850m for the six months to the end of August compared with the £1.1bn originally forecast.