Tesco saga a case of poor corporate governance

THE UK has recently been shocked by disclosures of accounting irregularities at its largest retailer Tesco.

The headline was that it had overstated its profits for the first half year by some £250 million (S$510.8 million) - quite a hole. No details have been made public, but it appears there were accounting "mistakes" in its dealings with suppliers. "Mistake" is, of course, a word that covers everything from deliberate to unfortunate. Whatever the truth, a mistake on such a scale calls into question the effectiveness of corporate governance at one of the largest retail organisations in the world.

Analysts are coy for obvious reasons, but it is thought that the mistakes include the acceleration...

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