Publication of Deferred Prosecution Agreement
23 Jan 2019
Tesco PLC notes the court’s decision to publish today the Deferred Prosecution Agreement between its subsidiary, Tesco Stores Limited, and the UK Serious Fraud Office (SFO).
In September 2014 Tesco announced an overstatement of expected profit at Tesco Stores Limited, which was independently investigated and verified by Deloitte. Following an investigation which lasted over two years and concluded in April 2017, Tesco entered into a DPA with the SFO. This DPA was also separately approved by a senior High Court Judge, LJ Leveson, as being in the interests of justice.
Since 2014, we have fundamentally transformed our business, and Tesco today is a very different company. We have introduced a new model for the way we buy and sell products; we have made wide ranging changes to our leadership; we have improved accountability; and we have developed stronger partnerships with our suppliers. Our business is stronger as a result of these changes.
- The DPA, announced in March 2017 and approved by the court in April 2017, relates to false accounting by Tesco PLC’s subsidiary, Tesco Stores Limited, between February 2014 and September 2014.
- The DPA is a voluntary agreement under which Tesco Stores Limited will not be prosecuted provided the business fulfils certain requirements.