Andy Behagg, John Maylam and David Baxter have been handed jail terms for their part in the multi-million pound potato corruption case.
At Croydon Crown Court today ex-Greenvale man Behagg was jailed for three years for authorising payments in exchange for lucrative contracts. Fellow director Baxter was handed a 30-month term for corruption and acquiring criminal property, while former Sainsbury’s buyer Maylam received four years for the same charges.
Judge Nicholas Ainley said it was "very nearly as serious a case of corruption as I can imagine" that involved Sainsbury's "being bribed with its own money".
"There will be many who find the details of frankly outrageous extravagance this case offers fascinating," he said. "But what must be remembered is that this is a case of bribery and corruption. But not just that. This is a case of corruption involving theft on a huge scale.”
The scam saw Maylam strike a deal with Baxter 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.
In a statement following the sentencing, Greenvale owner Produce Investments said: "Produce Investments has no tolerance of bribery, corruption or any other wrongdoing in business. The sentencing of Andrew Behagg and David Baxter, formerly of Greenvale, and of former Sainsbury's buyer John Maylam, should serve to draw a line under this distressing saga.
"We would like to point out that we instigated the investigation in early 2008 and Andrew Behagg and David Baxter ceased to be Greenvale employees shortly thereafter. The investigation ultimately led to the charges faced by these three men.
"Since 2008 we have introduced strict new procedures to make sure that such abuse is now impossible. Consequently our relationship with Sainsbury's is on a sound footing. We continue to be one of the largest suppliers of potatoes to shoppers all over the country.
"We acquired Greenvale AP in early 2006. In December 2007 it became clear to us that there might be financial improprieties involving the company's commercial activities with Sainsbury's.
"After the investigation by our advisors, we reported what was found to Sainsbury's in March 2008.
"Our investigations showed that £3.2 million - rather than the figure mentioned in court - had been disbursed improperly and all such arrangements were stopped immediately.
"After further investigations, Mr Behagg and the operations director, Mr Baxter, were required to resign. Mr Baxter pleaded guilty at the start of these proceedings."
No comments yet