Greencore, the UK’s largest sandwich maker, has sacked three senior managers after uncovering a €20 million (£15.8m) accounting fraud.

The Irish food group said expenses and others costs were deliberately concealed at a Scottish mineral water unit over the last three years.

“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,” Greencore said.

It added that three managers directly responsible for the financial controller blamed for the fraud have been dismissed.

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

“The group is taking legal advice on what, if any, elements of this financial impact can be recovered,” the company added.

The financial implications of these issues will lead to a restatement reducing the group’s operating profit by €4 million for 2006 and by €8 million for 2007,” the Dublin-based company said in a statement.

The mis-statements, uncovered during a routine audit, will hit operating profits by around €9 million in 2008, it said.

Greencore has asked KPMG to review all of its businesses focussing on internal controls, financial reporting and external auditing.

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