by Editorial on (#11Y3Z)
At last the groceries code adjudicator has found evidence that the country’s biggest supermarket short-changed its suppliersAt last, chapter and verse on how Tesco treats its suppliers. For decades, farmers have been complaining about the exploitative practices of the big supermarkets. Now it is clear that, at least in Tesco’s case, there was an abuse of buying power. It was not even so consumers gained from low prices; it was all about impressing the financial markets with good profit margins. The inquiry by the groceries code adjudicator, Christine Tacon, found evidence of payments delayed to disguise missed targets, and suppliers left waiting for million-pound payments for up to two years. Sometimes there were arbitrary or unfair deductions from payments too. But although Ms Tacon found serious breaches of the groceries code, she was unable to impose a fine because at the time the offences were committed she did not have the power to impose financial penalties.Most of the evidence Ms Tacon investigated relates to the period before September 2014 when Tesco’s new boss, David Lewis, took over. He has apologised and insists that the days are over when his predecessor allegedly flattered Tesco’s bottom line with questionable accounting procedures. That matter is still under investigation by the Serious Fraud Office. Continue reading...