Boss did not fear loss of contract, court told

The finance director of a Shropshire firm on trial over alleged bribes paid to a Sainsbury's potato buyer has denied he was concerned about losing business with the supermarket giant.

John Maylam received cash and lavish expenses in return for lucrative contracts with potato firm Greenvale, a court heard.

But Andrew Behagg, accused of authorising payments to the potato buyer on behalf of Greenvale, of Market Drayton, told Croydon Crown Court yesterday he believed the payments were nothing more than 'over-the-top' entertaining expenses.

Behagg, of Cambridgeshire, denies corruption between 2006 and 2008. Maylam, 44, of Kent, and Greenvale account manager David Baxter, 50, of Hinstock, near Market Drayton, were arrested after an external auditor was alerted. Both men admit corruption and will be sentenced after Behagg's trial.

Behagg, 60, one of the signatories of a bank account used to make payments to Maylam, said there was a good relationship between his employers and Sainsbury's.

Mr William Clegg, defending, asked him: "It's been suggested to you that Greenvale, and you, would have been concerned that you may lose the Sainsbury's business and because of that, you were engaging in some dishonesty. How long had Greenvale been supplying Sainsbury's with potatoes?"

Behagg replied it had been 40 years, adding he had no reason to believe their contract would end.

Greenvale had a two-year contract, worth £40 million a year, to supply 45 per cent of Sainsbury's UK potatoes at the time of the alleged corruption, the jury heard.

On the subject of Greenvale's relationship with Sainsbury's, he added: "I had no more concern than you would ever get. If you fall foul of them, you suffer. But we had managed not to over 40 years."

The court has heard the money in the fund used to make payments to Maylam came from Sainsbury's. It is the prosecution's case that the supermarket chain was overcharged by £3.8 million, with the extra money going into the account.

The trial continues.