Tesco’s spirits executive may be dismissed

All eight UK Tesco executives suspended over a £260 million profit misstatement, including the supermarket’s beer, wine and spirits director, are expected to be dismissed.

Tesco’s BWS executive Dan Jago may be dismissed as early as next week, the Independent reports

The supermarket suspended its long-serving BWS executive Dan Jago in October this year as part of an inquiry into a £263m profit black hole.

As such, the Serious Fraud Office launched a criminal investigation, while accountancy firm Deloitte and law firm Freshfields are carrying out internal investigations.

News of the shortfall immediately saw Tesco plc stocks briefly plummet by 11.3% to an 11-year low of 203.5p. Reasons behind the huge overstatement of future profits is not yet clear.

The Independent now reports that all suspended executives are expected to leave the company in the coming weeks, while other publications report three directors have already stepped aside.

According to the Financial Times, Kevin Grace, Tesco’s group commercial director, Carl Rogberg, the UK finance director, and John Scouler, food commercial director, have all formally left the company.

Investigations have now moved to the finance and accounting departments, which worked closely with the commercial division – where Jago and the other suspended executives were employed.

Finance bosses working in the supermarket’s groceries arm may also face dismissal, the Independent states.

In addition to Jago, all suspended Tesco executives are as follows: Chris Bush, UK chief executive; Carl Rogberg, UK finance director; Kevin Grace, commercial director; John Scouler, food commercial director; Matt Simister, head of sourcing; William Linnane, director of impulse purchases; and Sean McCurley, director of convenience.

The scandal was initially uncovered by a whistleblower in Tesco’s accountancy department, who informed new chief executive Dave Lewis, who suspended the named executives.