Fraud investigators prepare charges in £326m Tesco case

CHARGES are imminent in the Serious Fraud Office investigation into Tesco, the Mail can reveal.

Investigators have been pulling together evidence to see if any individuals working for Britain’s biggest supermarket, or the grocer itself, acted illegally in inflating its accounts.

A probe was launched in 2014, but sources say the SFO is close to forming a case.

Earlier this month Robert Buckland, the solicitor general, said the SFO had sought approval for extra funding of £15.5m to probe ‘blockbuster investigations’.

Meanwhile, a separate investigation into Tesco by the independent supermarket regulator Groceries Code Adjudicator is expected to conclude within the next two weeks.

The SFO launched its probe into Tesco amid claims that directors ‘cooked the books’ to cover up dismal profits. More than £2bn was wiped off Tesco’s market value after it admitted to inflating its accounts by £250m – a figure which has now jumped to £326m.

It was allegedly manipulating the timing of payments from suppliers – pulling some forward in order to paint a more flattering picture of its finances. Former chairman Sir Richard Broadbent and former chief executive Phil Clarke (pictured) both left the firm before the investigation was announced.

Clarke is among those who have been quizzed by the SFO. He has been questioned under caution, meaning anything said can be used as evidence in court

On Thursday, Tesco beat forecast with strong festive trading – giving hope the business is on the mend.

Tesco (up 3.55p to 164.45p) credited lower prices and 4,000 more staff delivering improved customer service for a 1.3pc rise in sales for the six weeks to January 9.

This was better than a fall of 1.5pc that analysts had forecast.

The supermarket has given no update on the progress of the fraud investigation and declined to comment last night.

The SFO declined to comment.