Former Sainsbury’s potato buyer John Maylam illegally took bribes totalling almost £5 million, a court heard this week.
Maylam allegedly struck a deal with David Baxter, Greenvale operating officer, that saw the potato supplier overcharge Sainsbury’s for its produce and pay out millions of pounds to Maylam for extravagant hospitality and other related gifts.
These included a £350,000 12-day holiday at the Monaco Grand Prix and a £200,000 stay at London’s Claridge’s Hotel as well as cash payments of hundreds of thousands of pounds.
Maylam and Baxter pleaded guilty to corruption. Their activity included setting up a foreign bank account dubbed The Fund between January 2006 and 2008.
Sentencing of both men will come once the trial of Greenvale’s finance director Andy Behagg at Croydon Crown Court, which started last week, is over.
Behagg has denied corruption and claimed in court that he is a victim of Maylam’s “extortion”. Baxter will give evidence against Behagg, who after his arrest said Maylam had offered better prices if Greenvale provided entertainment and hospitality for him.
Prosecuting, Paul Ozin said in court: “They believed that if they did not do what Mr Maylam was asking they would lose Sainsbury’s business… He said he assumed Mr Maylam had the permission of Sainsbury’s to use ‘The Fund’ for whatever he wanted. His explanation that Sainsbury’s knew what was going on is incredible.”
Sainsbury’s own code of conduct demands all hospitality gifts must be placed in a charity raffle and failure to do so may result in misconduct proceedings and dismissal.
In a statement the retailer said: “An account manager at a supplier and a former buyer have pleaded guilty to corruption. Their corrupt conduct was an unacceptable and calculated crime against Sainsbury’s. It was of a magnitude never experienced in our history. We demand the highest standards of all our colleagues and suppliers and Sainsbury’s code of conduct clearly details how we expect them to behave, and is reinforced by our confidential whistle blowing line.
“In 2008, as soon as we learnt of Mr Maylam’s actions, we reported him to the police and have co-operated with the authorities throughout their investigation.
“While the rest of the case is proceeding we’re unable to comment further.”
The trial continues and is expected to last up to three weeks.
