Tesco probe called off

A PROBE into the Tesco accounting scandal has been dropped by a watchdog accused of overly cosy links with the City.

Auditor PwC was facing investigation for allegedly failing to check Tesco’s books properly when the supermarket overstated profits by £326m. But yes- terday, industry regulator the Financial Reporting Council said there was no realistic prospect of a tribunal ruling against PwC or certain accountants.

Its chairman is Sir Win Bischoff, a lifetime banking insider. Head of regulation Melanie McLaren was a PwC partner until 2009.