More arrests in Greenvale bribery investigation

Five people have now been arrested in connection with the ‘rogue traders’ incident earlier this year, following allegations that a potato supplier had paid bribes to secure business with Sainsbury.

A spokeswoman at the City of London Police said: “Five men aged 28, 30, 40, 46 and 56 have been arrested on suspicion of corruption and money laundering. Searches have been carried out on residential and business premises in Kent, Shropshire and Cambridgeshire. They have since been bailed and inquiries are continuing.”

Greenvale, the potato supplier involved in the incident, is still supplying Sainsbury, confirmed a spokesman.

The arrests came as the Competition Commission unveiled its long-awaited report into the groceries market, and proposed the creation of an ombudsman to police relationships between buyers and suppliers.

According to the Commission, suppliers to the leading supermarkets are routinely asked for payment as a condition of stocking their products, retrospective discounts and compensation when profits do not meet expectations.

Supermarkets also delayed payments, debited suppliers’ invoices without their agreement, demanded payments to cover product wastage and expected suppliers to cover the cost of buyer visits, artwork and packaging design and even losses suffered as a result of shrinkage, according to the Commission. “On balance, we concluded that supply chain practices that transfer excessive risks and unexpected costs to suppliers, including through the use of retrospective payments and other adjustments to supply agreements, are sufficiently prevalent to cause concern.”