Senior Manager Fraud

Three senior managers at Scottish mineral water company Campsie Spring have been sacked after a £15.8m fraud was uncovered.

Campsie's parent company, Greencore, said the money went missing after costs were deliberately concealed over the last three years.

Greencore said the false accounts from 2006 up to last year amount to £16.6 million.

A spokesman for Greencore said: "The investigation indicates that this concealment of costs was undertaken by the former financial controller of the mineral water business who left the business prior to the concealment being uncovered."

The company, which ranks itself as Britain's biggest sandwich maker, said three managers directly responsible for the financial controller blamed for the fraud had been dismissed.

Greencore said it had not uncovered a motive for the fraud, but insisted it was an isolated incident.

A new managing director and acting finance director have been appointed to the mineral water business.

"The group is taking legal advice on what, if any, elements of this financial impact can be recovered," the spokesman said.

Greencore's accounts have been badly affected by the fraud. It is understood overall operating profit in this financial year will be reduced by more than £7m.

The company will also have to restate its accounts to reduce profits by more than £6m in 2007 and more than £3m in 2006.

Copyright © PA Business 2008