Tesco profits fall by 90%

Author
Discussion

chilistrucker

4,541 posts

151 months

Tuesday 5th April 2016
quotequote all
hidetheelephants said:
The funnelling of profits through a brass plate company(like many other large corporations with significant UK presence) in Luxembourg or somewhere similar needs to be stopped, but that's HMRC's job. I don't anticipate it happening any time soon.
Firstly, sorry for the thread revival smile
I quite like the above HMRC mention, as it is sort of relevant. With regards to this whole Tesco fiasco as was, who is ultimately to be held responsible for the monumental cover, sorry cock up that happened with Tescos "figures?" Would it be down to the CEO in charge at the time? I have to ask as i am clearly not business minded, and have never worked in that sort of field, so apologies for this and any other glaringly obvious mistakes or signs of stupidity that may follow.
I'm only interested as i currently have an interest on another forum that relates to a huge scam that was going on in the mid to late 90's and up to about 2003. This involved a company called London City Bond, and was a huge excise duty fiddle. Basically, full lorry loads of boooze were leaving L.C.B warehouses for export abroad, so no excise duty paid. The lorries and loads had all the correct and relevant paperwork for the loads to be taken abroad, but most never went. At the scams height, its believed that approx only 10 out of 100 lorries that left L.C.B for export, actually went abroad. The rest headed in the general direction of the channel ports, until the driver was phoned and instructed with a new delivery location, always in the UK. Mainly slightly dodgy cash and carries and the like and the booze was illegally sold on for huge profits to who ever the bosses may have been bandit
This did eventually pop up onto customs radar, but for some reason it all then became very sort of secret squirrel and cloak and dagger and rumbled on for a couple of years. It appears that 1 of the directors at L.C.B played an absolute blinder and was playing one part of customs, against another, which allowed the scam to continue whilst sorting himself out some kind of immunity when it all finally came on top, which it did. When this whole fiddle came to light, it was reported that there may have been somewhere in the region of 680 million pounds missing, in lost duty that should have been payed eek
Several people were arrested, and approx 90 more were under investigation, but on the day it went to trial at Liverpool crown court, the case against the 15 defendants collapsed and was thrown out rolleyes
It turns out that this fiddle "may" have gone right to the very top though, as 3 top officials at customs were now also under investigation. 1 of these was in fact the then chairman of customs and excise, one Sir Richard Broadbent.

The very same Sir Richard Broadbent that somehow went on to become CEO at Tesco at the time of their slightly dubious claimed accounts scratchchin
So although after the above mentioned L.C.B scam, and the fact that 3 top officials at customs, (Sir Richard being 1 of them) were to be investigated by the police in an independent investigation, he still ended up as CEO for Tesco. We all know how that 1 ended. Who at Tesco before taking on Sir Richard was tasked with the job of checking his CV and references?
Bonkers. Who said crime doesn't pay.

hidetheelephants

24,366 posts

193 months

Tuesday 5th April 2016
quotequote all
Sounds like carousel VAT fraud.

wc98

10,401 posts

140 months

Tuesday 5th April 2016
quotequote all
hidetheelephants said:
Sounds like carousel VAT fraud.
sounds like the usual different standards applied at the top level when societal elite are found to be thieving . wonder how much of that 680 million ended up in panama .

Digga

40,324 posts

283 months

Tuesday 5th April 2016
quotequote all
Carousel VAT fraud is common but ultimately impossible to cover up over a very long timeline.

As for Broadbent's suitability as an executive of a listed company, he would be just one of a long line of serial fk-ups and habitual pocket-liners - golden hello, golden goodbye - to litter the board rooms of the FTSE.

What both the Tesco book-cooking and VW emissions scandals show is that you have to be extremely careful and critical of how performance and bonuses are achieved.

chilistrucker

4,541 posts

151 months

Tuesday 5th April 2016
quotequote all
wc98 said:
hidetheelephants said:
Sounds like carousel VAT fraud.
sounds like the usual different standards applied at the top level when societal elite are found to be thieving . wonder how much of that 680 million ended up in panama .
Both I think. It turns out that the whole L.C.B and HM customs scam all finished up, even after the police investigations with not 1 single person being prosecuted. Absolute genius, how do these people get away with it? Is it really down to having friends in some very, very high places? 680 million quid gets fiddled and no one was ever held accountable. The then director of L.C.B, who funnily enough liked spending a lot of time in Spain probably played the best cards in the whole shenanigans as he was playing 1 side of customs against the other, and managed to very cleverly guarantee himself immunity from prosecution. He is still the director at L.C.B to this day.

Back in the late 90s the guy I worked for, (I was lorry driving) got in with L.C.B and we were doing a few loads out of there each week, fortunately all UK stuff. At the same time a friend of mine, who always liked living life on the edge offered me a driving job that he had got into, (I bet you know where this is going.) My mate said he could get me an in, it was £1200 cash a week eek but wasn't really 100% legit. No st sherlock, £1200 a week wagon driving back then, hmmmmscratchchin He said you pick up a load of booze normally in the Tilbury or Barking area, start heading off towards Dover and before you get there you will receive a call with a different delivery address than the one you have on the paperwork, you just take the load where you are told.
I declined my mates offer, as I had to much to lose and didn't fancy driving a wagon full of booze all over the UK constantly looking over my shoulder. I knew it was wrong and advised my mate to get out of it ASAP, but back then he just loved the thrill and the easy money. He did get out of it though, when 1 morning at about 4am he was kindly woken from his bed by HM customs. He was pulled in, later bailed and waited for the case to go to Liverpool crown court.
He was 1 of the 15 in Liverpool court that day, I still remember when he phoned me that day from Liverpool to tell me the case had collapsed and they were all free men????? Think all the accused that day were more surprised than anyone.
Friends in high places eh. Silence is golden, etc, etc.....

During the time that my mate was doing all these dodgy loads I bumped into him 1 day in Barking. I'D collected a full load of Vodka from Tilbury and instead of delivery it to one of the normal customer addresses I was told to deliver it to the L.C.B warehouse in Barking. This was unusual, but I was just doing my job. When I arrived at Barking my mate was there and so we had a chat as I very rarely ever bumped into him whilst he was doing his "special" job. He asked me for directions and the best way to Valencia in Spain as this load he was collecting was actually going to Spain this time. I told him the best route to take, as i'd been doing Spain for a few years on general haulage. We said our goodbyes and off he went. He phoned me 3 days later from Valencia asking about truckstops as he was to spend a couple of days there. I told him the best 1 to go too. He sat there for 3 days until he got a phone call telling him to come back to the UK and head for Newcastle, WITH the booze whistle

Whilst I was still at the Barking warehouses I really needed the loo and so asked 1 of the fork lift drivers if I could use the toilet? I asked the lad but he said the office staff didn't like drivers using the toilets but there was a caff a mile up the road. This always boiled my urine, so I said i'd just go and have a dump in front of the office windows. He then told me to go with him but be discreet, (what, for the bloody toilet.) He took me to the corner warehouse, (furthest from the offices) and walked me through to the loo at the far end of the warehouse. As we walked straight down the middle of the warehouse, to either side of us were the rows upon rows of booze, all spirits. Between each row was enough floor space for a forklift to move in and out to shunt pallets around etc. At the far end of the warehouse though the last 2 rows on each side didn't have any floor space, as each of these rows were full of Ferraris eek
I kid you not. I obviously tried to find out from the lad why there appeared to be about approx 15-20 Ferraris tucked away in the far dark corners of a warehouse in Barking???? He mumbled something about them being seized from some big time South American drugs dealer who'd been caught in London, and "customs" had seized them and were "storing" them at L.C.B for investigation purposes. It all seemed a bit odd at the time, but back then I had no real idea of the full extent of certain links between certain directors of L.C.B, some top slightly dubious officials at HM customs and some never to be seen shady individuals who were shifting all the illegal, non duty paid booze around.

I never did find out what became of those Ferraris, as I rarely went to the Barking warehouse and the next time i did go there, they had all long gone. Perhaps they ended up in Panama with the 680 million from the excise scam, and maybe a few Tescos shares.

Sorry for the long story, but thought it may be of some interest to some.
Head of customs, CEO at Tescos, I wonder where he is today?

wc98

10,401 posts

140 months

Tuesday 5th April 2016
quotequote all
interesting read that chilistrucker . thanks for posting.

chilistrucker

4,541 posts

151 months

Tuesday 5th April 2016
quotequote all
No problem wink
The L.C.B days were very interesting, i'm sure there was far more that went on back then, than what actually finally came out.
Back in the day I took the odd load to L.C.Bs Barking warehouse in a sea container instead of the normal curtain sided trailer. The thing with a box, (slang for sea container) is as a driver you never get in the box to assist with the loading/unloading. Its down to insurance I believe. I was told by one of the forkies where to stick my lorry in the yard for them to unload and once they'd broke the customs seal on the doors, (surprised it had one now) I went back to sit in the truck and read my book. 5 minutes later the lad knocks on my door and says, "right o drive, we're ready for you to get in the back and off load." I explained that as it was a box I wasn't insured to be there and it was down to them as it was their goods anyway.
I really wasn't interested in unloading it on my own and for nothing other than making their lives a lot easier, and I told him this. Handballing, (offloading by hand as the load wouldn't be on pallets) in a box, in the summer is no fun. He was very quick to inform me that the load was indeed on pallets, (very odd for a sea container, but think I know wink what was happening here) and that there would be 2 bottles of drink in it for me. Hmmm! scratchchin
All of a sudden I found some enthusiasm and agreed to jump in the back with a pallet truck and offload the goods. Before I climbed in the back though i asked about my 2 bottles? He told me he'd sort it once he'd got the first 2 pallets off. Once he'd lowered the 2nd pallet to the ground he got off the forklift, took one box off the pallet and half dropped it on the floor eek, he wasn't even subtle about it. "Oh well," he said, "thats another box of damages."
I think 1 bottle inside the case smashed, the rest were fine and hey presto I now had my 2 bottles of drink. I don't know how many times a day they were pulling that stunt, but it sort of shows what sort of "operation" was being run back then at one of the various arms of L.C.B
They were an interesting bunch bandit


Meant to add, it was just a couple of small comments on the other forum i'm following on a different website that sparked my interest, and made me remember the old days and the whole massive L.C.B/certain top customs officials massive scam. Thats what then lead me onto the links to Tesco and its very interesting then CEO.
It almost seems that if 1 and 1 make 2, history may well be repeating itself with the whole excise duty or import tax thing, as there are somethings mentioned on that other website that all just seem a bit too familiar, to the way things were being done back in the day when my daft mate was doing that very risky job.

Edited by chilistrucker on Tuesday 5th April 21:01

Halb

53,012 posts

183 months

Tuesday 5th April 2016
quotequote all
chilistrucker said:
Both I think. It turns out that the whole L.C.B and HM customs scam all finished up, even after the police investigations with not 1 single person being prosecuted. Absolute genius, how do these people get away with it? Is it really down to having friends in some very, very high places?
A while ago I used to pass time with a Meadow Soprano, she opened my eyes to a few things, one being that the top crims don't get caught because they pay the top cops so well. When they do get caught (like that fat scouser drug lord from a few years ago), it's because they've underpaid or pissed off a cop.


Nice stories, interesting reading.

14

2,106 posts

161 months

Wednesday 6th April 2016
quotequote all
chilistrucker said:
Firstly, sorry for the thread revival smile
I quite like the above HMRC mention, as it is sort of relevant. With regards to this whole Tesco fiasco as was, who is ultimately to be held responsible for the monumental cover, sorry cock up that happened with Tescos "figures?" Would it be down to the CEO in charge at the time? I have to ask as i am clearly not business minded, and have never worked in that sort of field, so apologies for this and any other glaringly obvious mistakes or signs of stupidity that may follow.
I'm only interested as i currently have an interest on another forum that relates to a huge scam that was going on in the mid to late 90's and up to about 2003.

It turns out that this fiddle "may" have gone right to the very top though, as 3 top officials at customs were now also under investigation. 1 of these was in fact the then chairman of customs and excise, one Sir Richard Broadbent.

The very same Sir Richard Broadbent that somehow went on to become CEO at Tesco at the time of their slightly dubious claimed accounts scratchchin
Richard Broadbent was the Chairman of Tesco not CEO.

Digga

40,324 posts

283 months

Wednesday 6th April 2016
quotequote all
14 said:
Richard Broadbent was the Chairman of Tesco not CEO.
Still Broadbent by name though and broadly bent by nature? If you'd interjected to provide evidence he wasn't the sort of person who'd have difficulty lying straight in bed, it might have been understandable, but really, that distinction is barely significant.

crankedup

25,764 posts

243 months

Wednesday 6th April 2016
quotequote all
Digga said:
Carousel VAT fraud is common but ultimately impossible to cover up over a very long timeline.

As for Broadbent's suitability as an executive of a listed company, he would be just one of a long line of serial fk-ups and habitual pocket-liners - golden hello, golden goodbye - to litter the board rooms of the FTSE.

What both the Tesco book-cooking and VW emissions scandals show is that you have to be extremely careful and critical of how performance and bonuses are achieved.
Been saying this for so many years I became bored with myself! An end to the performance board back scratching will be a start. Politicians are no different with the revolving door

skwdenyer

16,504 posts

240 months

Wednesday 6th April 2016
quotequote all
Wasn't the LCB scheme basically similar to that allegedly run by Richard Branson with "exports" of vinyl records back in the '60s? IIRC, that one involved driving to the customs hut, getting the export papers stamped (reclaim tax), then driving out of the rear entrance and back to London...

chilistrucker

4,541 posts

151 months

Wednesday 6th April 2016
quotequote all
skwdenyer said:
Wasn't the LCB scheme basically similar to that allegedly run by Richard Branson with "exports" of vinyl records back in the '60s? IIRC, that one involved driving to the customs hut, getting the export papers stamped (reclaim tax), then driving out of the rear entrance and back to London...
Pretty much what was happening with L.C.B. Loads headed out of bonded warehouse with relevant documents, just most never made it abroad to their supposed destination. Drivers were parking up in various locations until the calls came through telling where the new destination would be, always UK. Drivers would then head to new destination, park up near by and await another phone call to say it was ok to bring the illegal goods in.

Apologies, he was indeed the chairman, not the CEO.

Oakey

27,576 posts

216 months

Wednesday 6th April 2016
quotequote all
chilistrucker said:
Both I think. It turns out that the whole L.C.B and HM customs scam all finished up, even after the police investigations with not 1 single person being prosecuted. Absolute genius, how do these people get away with it? Is it really down to having friends in some very, very high places? 680 million quid gets fiddled and no one was ever held accountable. The then director of L.C.B, who funnily enough liked spending a lot of time in Spain probably played the best cards in the whole shenanigans as he was playing 1 side of customs against the other, and managed to very cleverly guarantee himself immunity from prosecution. He is still the director at L.C.B to this day.

Back in the late 90s the guy I worked for, (I was lorry driving) got in with L.C.B and we were doing a few loads out of there each week, fortunately all UK stuff. At the same time a friend of mine, who always liked living life on the edge offered me a driving job that he had got into, (I bet you know where this is going.) My mate said he could get me an in, it was £1200 cash a week eek but wasn't really 100% legit. No st sherlock, £1200 a week wagon driving back then, hmmmmscratchchin He said you pick up a load of booze normally in the Tilbury or Barking area, start heading off towards Dover and before you get there you will receive a call with a different delivery address than the one you have on the paperwork, you just take the load where you are told.
I declined my mates offer, as I had to much to lose and didn't fancy driving a wagon full of booze all over the UK constantly looking over my shoulder. I knew it was wrong and advised my mate to get out of it ASAP, but back then he just loved the thrill and the easy money. He did get out of it though, when 1 morning at about 4am he was kindly woken from his bed by HM customs. He was pulled in, later bailed and waited for the case to go to Liverpool crown court.
He was 1 of the 15 in Liverpool court that day, I still remember when he phoned me that day from Liverpool to tell me the case had collapsed and they were all free men????? Think all the accused that day were more surprised than anyone.
Friends in high places eh. Silence is golden, etc, etc.....

During the time that my mate was doing all these dodgy loads I bumped into him 1 day in Barking. I'D collected a full load of Vodka from Tilbury and instead of delivery it to one of the normal customer addresses I was told to deliver it to the L.C.B warehouse in Barking. This was unusual, but I was just doing my job. When I arrived at Barking my mate was there and so we had a chat as I very rarely ever bumped into him whilst he was doing his "special" job. He asked me for directions and the best way to Valencia in Spain as this load he was collecting was actually going to Spain this time. I told him the best route to take, as i'd been doing Spain for a few years on general haulage. We said our goodbyes and off he went. He phoned me 3 days later from Valencia asking about truckstops as he was to spend a couple of days there. I told him the best 1 to go too. He sat there for 3 days until he got a phone call telling him to come back to the UK and head for Newcastle, WITH the booze whistle

Whilst I was still at the Barking warehouses I really needed the loo and so asked 1 of the fork lift drivers if I could use the toilet? I asked the lad but he said the office staff didn't like drivers using the toilets but there was a caff a mile up the road. This always boiled my urine, so I said i'd just go and have a dump in front of the office windows. He then told me to go with him but be discreet, (what, for the bloody toilet.) He took me to the corner warehouse, (furthest from the offices) and walked me through to the loo at the far end of the warehouse. As we walked straight down the middle of the warehouse, to either side of us were the rows upon rows of booze, all spirits. Between each row was enough floor space for a forklift to move in and out to shunt pallets around etc. At the far end of the warehouse though the last 2 rows on each side didn't have any floor space, as each of these rows were full of Ferraris eek
I kid you not. I obviously tried to find out from the lad why there appeared to be about approx 15-20 Ferraris tucked away in the far dark corners of a warehouse in Barking???? He mumbled something about them being seized from some big time South American drugs dealer who'd been caught in London, and "customs" had seized them and were "storing" them at L.C.B for investigation purposes. It all seemed a bit odd at the time, but back then I had no real idea of the full extent of certain links between certain directors of L.C.B, some top slightly dubious officials at HM customs and some never to be seen shady individuals who were shifting all the illegal, non duty paid booze around.

I never did find out what became of those Ferraris, as I rarely went to the Barking warehouse and the next time i did go there, they had all long gone. Perhaps they ended up in Panama with the 680 million from the excise scam, and maybe a few Tescos shares.

Sorry for the long story, but thought it may be of some interest to some.
Head of customs, CEO at Tescos, I wonder where he is today?
Not the caff on Chequers Lane, next to a certain scrap metal firm by any chance?

chilistrucker

4,541 posts

151 months

Wednesday 6th April 2016
quotequote all
Not that 1, this 1 is on River Road.

Oakey

27,576 posts

216 months

Wednesday 6th April 2016
quotequote all
LCB is in the stomping ground of a number of East End villains (one of which is suspected in the Hatton Garden heist), I'd be amazed if they weren't involved somehow considering they were able to make a case against them collapse around the same time period. What forum is discussing this, sounds interesting.

MrJuice

3,362 posts

156 months

Thursday 7th April 2016
quotequote all
Very interesting story.

Reminds me of so many fairly large VAT scams. There were the phone scams in the early noughties. The most recent was some dude called Uncle Saff who used to be close to Amir Khan who was selling carbon credits in Germany. He would charge VAT but not pass it on to the German exchequer. The absconded to Dubai but decided it would be a good idea to be ringside at an Amir Khan fight in Las Vegas. He got to watch the fight, I think, and the got arrested in a coordinated German-US arrest. He clearly didn't think this through or pay the right people enough money.

Pan Pan Pan

9,915 posts

111 months

Thursday 7th April 2016
quotequote all
On the news this morning, the Co-op has increased its profits.
I rarely visited the local Co-op because its prices were generally higher, than other local supermarkets, and the stores always seemed a bit lack lustre, and some how put me in mind of a third world supermarket, with just a few undesirable products left on the shelves.
Surprisingly there are no Tesco outlets near to me, but I always wondered if the way Tesco seemed to be opening outlet, after outlet around the country was creating over saturation, and that this was part of their current problem?

chilistrucker

4,541 posts

151 months

Saturday 9th April 2016
quotequote all
Oakey said:
LCB is in the stomping ground of a number of East End villains (one of which is suspected in the Hatton Garden heist), I'd be amazed if they weren't involved somehow considering they were able to make a case against them collapse around the same time period. What forum is discussing this, sounds interesting.
It certainly is wink
Sorry for the delay but have been working away for the last couple of days, hopefully this link will work
www.trucknetuk.com/phpBB/viewtopic.php?f=3&t=1...

It was this topic that first spiked my interest to look back into the whole L.C.B thing and the "dodgy" customs shenanigans. The link may seem a bit insignificant but there are a couple of things on there that instantly pricked my ears up again.

chilistrucker

4,541 posts

151 months

Saturday 9th April 2016
quotequote all
anonymous said:
[redacted]
hmmm, i'm puzzled???? (but i am useless with computers.)
When i click on the link it takes me straight there???


Its on www.trucknetuk.com
On the forums page, 3rd topics page down, the Euro forum thread and the topic is, 'Those dodgy trucks in Calais.'

Edited by chilistrucker on Saturday 9th April 15:34