More Ahold executives quit
Disco management resigns as financial scandal spreads
February 27 2003
The senior management of Ahold’s supermarket business in Argentina has resigned.
The latest development in the financial crisis facing the supermarket retailer saw the departure of four executives from Disco Ahold, based in Argentina, including the chief executive.
Ahold had previously indicated that its ongoing investigation into irregularities had raised questions about the legality of some transactions at Disco. However, the company said that its investigation shows that there will be “no material impact on Ahold’s financial results.”
Ahold became the sole owner of Disco last autumn when its local partner, Velox defaulted on debts.
Earlier this week Ahold revealed accounting irregularities at its US Foodservice division which prompted the resignation of its chief executive officer and chief financial officer. Those irregularities are now the subject of an investigation by the US authorities.
Alfredo Garcia Pye, currently manager of Ahold’s Santa Isabel operation in Peru, has been appointed chief executive officer of Disco, which operates around 235 supermarkets. Pieter de Nooij, a member of Ahold’s Latin America Support Group, becomes Disco’s chief financial officer.
Ahold said a team from the Netherlands has also been installed at Disco “to offer active support to the company, enforce controls and ensure compliance with the Ahold business principles.”
