Serious Fraud Office keeps tabs on Tesco and other grocers
We continue to laugh at Tesco's woes (yes, we're very petty) today as it has been announced that the Serious Fraud Office is keeping an eye on what's going on at Tesco after they invented £250m in their accounts.
Sainsbury’s and Morrisons have also been warned by auditors that they're being watched too, as they could be liable to an accounting balls-up.
The Financial Conduct Authority have also been told about the goings-on at Tesco and now, it looks like the mega-grocer could be forced to open up old accounts, from 2011. Why? Over in That America, law firm Glancy Binkow & Goldberg said they're looking at allegations on behalf of Tesco’s US shareholders over possible violations of federal securities laws.
There's a lot of rumours knocking about that Tesco have been railroading suppliers into getting rebates and, according to The Times, these rebates could be sought with little notice under the guise of growing commercial income for marketing or promotions.
Cantor Fitzgerald retail analyst Mike Dennis said: “This was a well-known practice within Tesco and we believe it has been going on for at least a year or more, and became more desperate as sales full further."
Not only that, the South Koreans are coming after Tesco too. Prosecutors in South Korea are investigating Homeplus (owned by Tesco) over allegations that the company's managers sold customers' private information to insurance firms.
The FRC said: "The FRC has disciplinary powers in relation to misconduct by accountants and, through the Financial Reporting Review Panel, can also require a company to restate its financial statements. The FRC does not have powers to monitor or require restatement of unaudited trading statements. It will consider the outcome of the investigation announced by the company and determine whether it should take regulatory action."