This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/uk-news/2017/oct/05/tesco-whistleblower-commissioned-report-on-scale-of-profit-hole-court-hears
The article has changed 5 times. There is an RSS feed of changes available.
| Version 3 | Version 4 |
|---|---|
| Tesco whistleblower commissioned report on scale of profit hole, court hears | Tesco whistleblower commissioned report on scale of profit hole, court hears |
| (11 days later) | |
| The whistleblower at the centre of the Tesco accounting scandal has told a court that he personally commissioned a detailed analysis of the scale of alleged profits manipulation at the retailer and that his team were “falling apart” in an aggressive environment where his bosses refused to downgrade targets. | The whistleblower at the centre of the Tesco accounting scandal has told a court that he personally commissioned a detailed analysis of the scale of alleged profits manipulation at the retailer and that his team were “falling apart” in an aggressive environment where his bosses refused to downgrade targets. |
| Amit Soni, a senior accountant, alerted the grocer’s most senior management to a £250m profits misstatement in 2014. His warning prompted the company to make a statement to the London Stock Exchange that wiped £2bn from the value of the business. | Amit Soni, a senior accountant, alerted the grocer’s most senior management to a £250m profits misstatement in 2014. His warning prompted the company to make a statement to the London Stock Exchange that wiped £2bn from the value of the business. |
| Soni is giving evidence for the prosecution at Southwark crown court in the case against Carl Rogberg, the former finance director of Tesco UK; John Scouler, the former commercial director for food; and Christopher Bush, the former managing director of Tesco UK. The three men have all been charged with one count of fraud by abuse of position and one count of false accounting. | Soni is giving evidence for the prosecution at Southwark crown court in the case against Carl Rogberg, the former finance director of Tesco UK; John Scouler, the former commercial director for food; and Christopher Bush, the former managing director of Tesco UK. The three men have all been charged with one count of fraud by abuse of position and one count of false accounting. |
| The Serious Fraud Office (SFO) launched a criminal investigation into accounting practices at Tesco in October 2014. The three men deny any wrongdoing and have pleaded not guilty. | The Serious Fraud Office (SFO) launched a criminal investigation into accounting practices at Tesco in October 2014. The three men deny any wrongdoing and have pleaded not guilty. |
| Soni said he had asked his team to put together a detailed report on the scale of the profit hole at Tesco after he pressed Scouler to ask for £200m in “relief” to be knocked off the second half target in 2014 but got only a “small number”. | Soni said he had asked his team to put together a detailed report on the scale of the profit hole at Tesco after he pressed Scouler to ask for £200m in “relief” to be knocked off the second half target in 2014 but got only a “small number”. |
| He said he could see his team were “falling apart” under the pressure. “I could clearly see that parts of my team were beginning to give up, if not the entire team. They all work very, very hard. | He said he could see his team were “falling apart” under the pressure. “I could clearly see that parts of my team were beginning to give up, if not the entire team. They all work very, very hard. |
| “They were all very intelligent people, but it was getting to the point that even they could see that the future was not looking any better, it was not going to get better from what it was today. They were seeing me one on one, they were talking to me in groups and I could see them falling apart. | “They were all very intelligent people, but it was getting to the point that even they could see that the future was not looking any better, it was not going to get better from what it was today. They were seeing me one on one, they were talking to me in groups and I could see them falling apart. |
| “They were citing examples of how aggressive the entire environment was, they were citing examples of aggression with the suppliers as well,” he said. | “They were citing examples of how aggressive the entire environment was, they were citing examples of aggression with the suppliers as well,” he said. |
| He said he personally gave up trying to persuade his immediate bosses to accept that profits were way off target via the usual course of business. | He said he personally gave up trying to persuade his immediate bosses to accept that profits were way off target via the usual course of business. |
| In late August Soni asked his junior colleagues to prepare a special document, called the “legacy paper”. He said he wanted to get “even more clarity” on how a £200m profit undershoot had happened and make it clear “in one sheet” so that he could pass that on to Bush. His group spoke to Tesco buyers in all the grocery departments, including fresh produce, dairy, and healthcare, to lay out “line by line” how income had been “pulled forward” . The process of pulling forward involves booking future income early, which inflates current income. | In late August Soni asked his junior colleagues to prepare a special document, called the “legacy paper”. He said he wanted to get “even more clarity” on how a £200m profit undershoot had happened and make it clear “in one sheet” so that he could pass that on to Bush. His group spoke to Tesco buyers in all the grocery departments, including fresh produce, dairy, and healthcare, to lay out “line by line” how income had been “pulled forward” . The process of pulling forward involves booking future income early, which inflates current income. |
| He said the document had been prepared without Scouler, Rogberg or Bush asking him to do so and he thought Rogberg might have seen it as a “waste of time”. | He said the document had been prepared without Scouler, Rogberg or Bush asking him to do so and he thought Rogberg might have seen it as a “waste of time”. |
| The case continues. | The case continues. |
| UK news | UK news |
| Share on Facebook | Share on Facebook |
| Share on Twitter | Share on Twitter |
| Share via Email | Share via Email |
| Share on LinkedIn | Share on LinkedIn |
| Share on Pinterest | Share on Pinterest |
| Share on Google+ | Share on Google+ |
| Share on WhatsApp | Share on WhatsApp |
| Share on Messenger | Share on Messenger |
| Reuse this content | Reuse this content |