Ex-Tesco man cleared over accounts scandal by watchdog

Tesco’s former finance chief has been cleared by the accountancy watchdog over a £263 million accounting black hole discovered at the supermarket two years ago.

The Financial Reporting Council (FRC) announced it has dropped its investigation into Laurie McIlwee, who was in charge of Tesco’s finances until his resignation in April 2014, five months before the grocer admitted it had overstated profits in accounts dating back to 2012.

The FRC said there was "no realistic prospect that a Tribunal would make an adverse finding in relation to the conduct of Mr Laurie McIlwee".

Its wider investigation into the scandal is ongoing, it added.

As well as the FRC probe, the affair sparked a Serious Fraud Office investigation into Tesco, which is also ongoing. McIlwee, has been named as an SFO witness and not a suspect, with the investigation said to focus on the months after his departure.

Tesco chief executive Dave Lewis, who arrived just weeks before the irregularities were discovered, has overhauled senior management.

Chairman Richard Broadbent and a string of board members were replaced.

Tesco declined to comment.