April 11, 2021

Dia files a complaint with the Prosecutor's Office after detecting accounting irregularities

Dia files a complaint with the Prosecutor's Office after detecting accounting irregularities


The supermarket chain DIA has filed a complaint with the Prosecutor's Office after detecting accounting irregularities, which has led him to review his results from previous years to recalculate them.

In a press release, the company has indicated that this decision is made after completing a "forensic investigation" on the accounts of the firm for the year 2017, but has not specified who were responsible for the aforementioned irregularities.

Also today DIA has disclosed the auditor's memory KPMG on its accounts, which warns of the existence of "irregular practices" committed by employees and senior managers of the group with a negative impact on their accounts.

The document analyzes exhaustively the impact of these irregularities in Spain and Brazil, but calculates it jointly with other "errors" found, after proceeding to a review of its 2016 and 2017 financial statements.

However, it only attributes to irregular practices a "overestimation of commercial discounts to be received from suppliers in Spain and Brazil", with a negative effect on the accounts of 52.6 million euros.

"The investigation has revealed the existence of irregular practices that would have been carried out by certain employees and managers (including some of the previous members of the Group's top management), bypassing internal controls," according to the report, which reveals that they will reinforce surveillance protocols to prevent it from happening again.

DIA also reported today in a document prepared by the Appointments and Remuneration Committee that analyzes the possibility of to demand that the CEOs dismissed during the last months return their "bonus", in case it is proven that they were charged based on "false or inaccurate" information or due to the existence of errors that affect the company's accounts.

Specifically, the cases of Ricardo Currás, CEO of the firm between 2011 and August 2018, and his successor, Antonio Coto, who just spent four months in office, until December 28, are studied.

DIA closed 2018 with losses of 352.6 million euros and prepare an Employment Regulation File (ERE) in Spain that will affect a maximum of 2,100 workers.

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