Tesco probed over supplier payment delays
Embattled supermarket chain Tesco is facing a fresh investigation, this time at the hands of the Groceries Code Adjudicator, amidst concerns that it delayed payments to its suppliers.
The body’s adjudicator Christine Tacon said she had ‘reasonable suspicion’ that the retailer had breached the Groceries Supply Code of Practice but is powerless to fine the firm for past offences.
Welcoming the start of the nine month investigation business secretary Vince Cable commented: “This is an historic day for the groceries code adjudicator and shows we have created a regulator that has real teeth. I have also agreed an increase of almost 40% in the adjudicator's funding for the coming year, so that it can carry out more of its important work.
“Now that a formal investigation has been launched, I would encourage anyone with any evidence of wrongdoing to come forward and to be confident of being able to do so confidentially, as their anonymity will be protected by law."
Responding to the latest criticism of its business practices Tesco said that it had ‘taken action to strengthen compliance’ and was ‘changing the way it worked with suppliers’.