Five senior managers are understood to have been suspended at Computer 2000 as US parent group Tech Data Corporation continues its investigation into accounting ‘improprieties’ at its UK subsidiary, sources claim.
Computer 2000’s divisions include Tech Data Mobile, Azlan, Maverick, Datech and the recently acquired SDG.
The investigation was launched in March this year after US distribution giant Tech Data Corporation said it would have to restate some or all of its financial results over the past three years to ‘correct improprieties’ relating to its UK subsidiary Computer 2000’s vendor accounts.
It estimated at the time that around £21m could be cut from the company’s previously reported net profit. It was unclear as Mobile went to press which financial managers had been suspended and from which divisions in Computer 2000.
The investigation has resulted in a major audit of all Computer 2000’s divisions with staff reporting that auditors were ‘crawling all over everything’. Staff morale is said to be low at the company, with employees unnerved by the investigation which has seen auditors taking away staff computers as part of the probe.
The accounting improprieties at Computer 2000 stretch over a period of three years, with Tech Data group estimating that the restatement of its accounts will reduce previously reported consolidated operating income by$10m and consolidated net income by $8m over the three fiscal years.
Tech Data Corporation has also warned that the estimated amount could change during the ongoing investigation. Computer 2000 was unavailable for comment as Mobile went to press.
When the investigation was launched Robert M. Dutkowsky, Tech Data Group’s CEO, said the company would not comment during the investigation ‘unless any material developments arise.’
Separately, the distributor has already seen a number of senior management changes in recent weeks. These are not related to the investigation. They include Tech Data Mobile’s UK and Ireland regional VP, Jim Michel, who is currently working on a consultancy basis at the company after handing in his notice for personal reasons. His role has been taken on by Stephen Nolan, Tech Data Mobile Europe’s vice-president.
Michel’s departure was closely followed by Tech Data Mobile’s accessories chief Martijn Van Den Hout, who left this month to take up a position in Jabra’s European division.
Author: Carol Millett