Sainsbury's potato buyer John Maylam was arrested last week after allegations he accepted some £3m in bribes from potato producer and packing firm Greenvale.
City of London police raided four premises in Cambridgeshire and Shropshire on Thursday (13 March) and arrested Maylam "on suspicion of corruption and money laundering".
A second man, thought to be Greenvale operations director David Baxter, was also arrested. Both men were released on bail.
Greenvale, which also supplies Tesco, supplies around half of Sainsbury's potatoes.
The retailer declined to comment other than to "confirm that allegations have been made concerning certain payments and benefits by a supplier to an individual employed by us".
The relationship between supermarkets and their suppliers has been the subject of a two-year investigation by the Competition Commission, which is due to publish a final report in May.
Greenvale has three potato packing operations, in Shropshire, Cambridgeshire and Berwickshire, and suppliers caterers and processors as well as retailers.
City of London police raided four premises in Cambridgeshire and Shropshire on Thursday (13 March) and arrested Maylam "on suspicion of corruption and money laundering".
A second man, thought to be Greenvale operations director David Baxter, was also arrested. Both men were released on bail.
Greenvale, which also supplies Tesco, supplies around half of Sainsbury's potatoes.
The retailer declined to comment other than to "confirm that allegations have been made concerning certain payments and benefits by a supplier to an individual employed by us".
The relationship between supermarkets and their suppliers has been the subject of a two-year investigation by the Competition Commission, which is due to publish a final report in May.
Greenvale has three potato packing operations, in Shropshire, Cambridgeshire and Berwickshire, and suppliers caterers and processors as well as retailers.
Source: packagingnews
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