Industry watchdog the Groceries Code Adjudicator has become the latest body to launch an investigation into supermarket giant Tesco.
The Groceries Code Adjudicator (GCA) is to scrutinise Tesco’s supplier relationships. The investigation follows others already under way by the Serious Fraud Office and Financial Reporting Council following the revelation of an accounting scandal at Tesco which resulted in a £260m black hole in profits.
Adjudicator Christine Tacon said she had a “reasonable suspicion” that the code had been breached.
The adjudicator will look into Tesco’s profits and alleged delays in payments to suppliers.
A Tesco spokesperson said: “We have worked closely with the office of the adjudicator since its creation to put in place strong compliance processes.
“Following our announcement last September regarding commercial income, we have worked with her to identify any relevant GSCOP [Grocery Suppliers Code of Practice] issues.
“An internal review we carried out and shared with the GCA identified some areas of concern.
“We have taken action to strengthen compliance and, as we have announced, we are changing the way we work with suppliers.
“We will continue to co-operate fully with the GCA as she carries out her investigation and welcome the opportunity for our suppliers to provide direct feedback.”
The GCA investigation is expected to take up to nine months.
In the news: Groceries Code Adjudicator Christine Tacon profiled
- Currently reading
Tesco faces investigation by Groceries Code Adjudicator