Tesco reaches agreement over accounting scandal
Tesco has reached an agreemement with investigators that will see the company pay over £200m in fines and compensation following the accounting scandal that nearly collapsed the company
31 March 2017 | 0
Tesco has reached an agreement with the UK’s Serious Fraud Office regading the accounting scandal that nearly collapsed the billion-pound company in late 2015.
The Deferred Prosecution Agreement was reached in a preliminary court ruling, which will go forward for final approval on 10 April.
The charges stem from Tesco’s false accounting between February and September 2014, which caused the previous CEO to step down and for Dave Lewis to take the role.
Under the terms of the agreement, Tesco has agreed to pay a financial penalty of £129m (€150m), while the cost of compensation is expected to total around £85m (€98m).
CEO Dave Lewis says the company is committed to the process. “We have fully cooperated with this investigation over the past two and a half years,” he said, “while at the same time fundamentally transforming our business.
“We sincerely regret the issues which occurred in 2014,” he added, “and we are committed to doing everything we can to restore trust in our business and our brand.”