 executives has been put on hold until September 25. Christopher Bush, Carl Rogberg and John Scouler){kind=link}
The trial of three former Tesco (LON:TSCO) executives has been put on hold until September 25.
Christopher Bush, Carl Rogberg and John Scouler are all on trial following the supermarket’s £263 million accounting scandal in 2014.
The former managing director, finance director and food commercial director have all been charged with abusing their positions to falsely inflate the Tesco’s 2014 profits.
All three men pleaded not guilty at a hearing on Sunday. They could face prison sentences of up to seven and 10 years.
In 2014, the supermarket giant issued a statement to the London Stock Exchange announcing that it that it had found an overstatement of £250 million for expected profit for the half year. The group said this was mainly due to booking deals with suppliers earlier than they should have.
The overstatement was found three weeks after new chief executive Dave Lewis took over Phil Clarke. Lewis is expected to give evidence in the trial.
In April the Serious Fraud Office secured a £129 million penalty against Tesco for the accounting fraud.
“DPAs have been a real success, enabling cooperative companies to account for conduct to a court in a transparent way without sustaining a criminal conviction, or the collateral damage (including disbarment), that may well follow” said Serious Fraud Office boss David Green.
“The company is able to draw a line under the past and radically to overhaul compliance and removing the board on whose watch the conduct took place.”
“We fully recognise that the shape of law enforcement is always a matter for ministers, we await any proposals and the underlying evidence justifying them, and are aware that such decisions are in hand”, he said.
“The SFO is fully prepared to play our part, with our partners, in the implementation of any sound proposals leading to a better understanding of the threat and how it is better addressed by the various agencies facing it.”
“Post Brexit, inward investment and economic prosperity will (as now) need the certainty of the rule of law, a level playing field, and properly functioning markets”, added Green.