Ahold in further Argentina probe
Supermarket operator to invetsigate Disco transactions
March 26 2003
Ahold is to carry out further investigations at its Argentine supermarket subsidiary Disco.
The Netherlands-based supermarket giant said it has asked the Buenos Aires Stock Exchange and the Argentine Securities Regulatory Authority for a further extension, until May 22, before submitting Disco’s 2002 accounts.
Ahold said that, in keeping with its intent to cooperate with all regulatory authorities, it is undertaking a further investigation of certain transactions and related matters at Disco.
Last month, the Disco chief executive and three other senior executive resigned after Ahold said its ongoing investigation into the business had raised questions about the legality of some transactions. Ahold became the sole owner of Disco last autumn when its local partner Velox defaulted on debts.
The problems at Disco are not related to the accounting irregularities related to supplier payments at Ahold’s US Foodservice division, which are now being investigated by the US and Dutch authorities.
Ahold has already said the problems at Disco will affect its financial, and said it “has no reason to believe at this time that this further review will alter this finding.”
