Serious Fraud Office confirms criminal investigation into Tesco
The Serious Fraud Office has confirmed that it will investigate Tesco following the accounting error which resulted in profits being overstated by £263m.
Irregularities: Tesco is under investigation
“The Director has opened a criminal investigation into accounting practices at Tesco plc,” it stated, adding that it was unable to provide further details as the investigation is underway.
The Serious Fraud Office is an independent government department responsible for investigating and prosecuting fraud and corruption.
It is headed by the director, David Green QC.
The Financial Conduct Authority has already launched an investigation into Tesco while accounting firm Deloitte has completed its investigation.
The accounting error was first reported in September and was estimated to be in the realm of £250m. It resulted eight executives being suspended, including UK managing director Chris Bush.
Soon after the revelations came to light, a trading update from Tesco showed that profits were down by 40 per cent and UK like-for-like sales down 4.6 per cent. A poor performance in Asia, where profit dropped by 17 per cent to £260m, led to speculation that the division may be sold to raise capital.
The Drum was awaiting a response from Tesco at time of publication.