By Mark Kleinman, City Editor
Vince Cable has raised concerns about Tesco's treatment of its supplier base, intensifying the pressure on Britain's biggest retailer as it battles to contain the fallout from its £263m accounting scandal.
Sky News has learnt that the Business Secretary wrote to the supermarket industry ombudsman in recent weeks to express support for a comprehensive review of the way Tesco deals with suppliers and whether its approach may have contributed to the shock profit overstatement.
In a letter to the Groceries Code Adjudicator (GCA), Christine Tacon, Mr Cable is understood to have said that while it was important not to prejudge her review of the matter, it would be an important exercise and closely watched by both suppliers and consumers.
Mr Cable's intervention underlines the interest in Westminster in the crisis at Tesco, which deepened last week when the Serious Fraud Office (SFO) confirmed Sky News' report that it was launching a criminal investigation into the issue.
The GCA was set up by Mr Cable two years ago amid growing anxiety about the treatment of suppliers by the major UK grocers.
The Business Secretary is understood to have expressed concerns about Tesco's reputation for behaving robustly towards the companies which supply it, many of which are small or medium-sized businesses reliant on their contracts with the retailer.
He is also said by allies to be keen to examine whether aggressive accounting practices are connected to the way in which Tesco's supply chain is perceived to be squeezed by it.
Ms Tacon said in September that she would monitor the situation.
"I have requested that compliance with the Groceries Supply Code of Practice is included in the scope of the internal investigation and I have asked to be notified if Tesco starts to find practices which might breach the Code," she said.
"The GCA will take a decision on next steps based on the evidence."
Dave Lewis, Tesco's new boss, said last month that the £263m profits overstatement related to the premature recognition of revenues from suppliers, which make payments to retailers based on the sale of their products and the scale of promotional activity supporting them.
Eight executives, including the UK managing director Chris Bush, have been asked to stand aside pending the outcome of the investigations into the accounting mis-statement.
Deloitte, the accountancy firm, and Freshfields, Tesco's legal adviser, undertook a preliminary investigation, which was passed to the Financial Conduct Authority (FCA). The City watchdog dropped its own inquiry when the SFO confirmed that its probe was underway.
Mr Lewis, who replaced the ousted Philip Clarke, unveiled a fall in half-year profits of more than 90% last month, underlining the scale of the task ahead as the company battles to recapture market share lost to discounters such as Aldi and Lidl.
Tesco has also been deserted by some of its leading shareholders, including the US-based Harris Associates and Warren Buffett's Berkshire Hathaway, amid concern over its strategy and the state of its balance sheet.
The turmoil has forced Tesco to shore up its financial position by turning to five banks to lend the company £1bn each, with the sale of some of its assets likely in the coming months.
Anda sedang membaca artikel tentang
Cable Concerns Over Tesco 'Supplier Squeeze'
Dengan url
http://kaumkusaman.blogspot.com/2014/11/cable-concerns-over-tesco-supplier.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Cable Concerns Over Tesco 'Supplier Squeeze'
namun jangan lupa untuk meletakkan link
Cable Concerns Over Tesco 'Supplier Squeeze'
sebagai sumbernya
0 komentar:
Posting Komentar