Sainsbury's boss Mike Coupe sentenced to jail in Egypt

29th Apr 2015 07:08

Mike Coupe, the chief executive of Sainsbury's supermarket group, has been handed a two year jail sentance in Egypt.Egyptian authorities demanded Coupe attend a hearing last Sunday for an embezzlement charge over the collapse of a business Sainsbury's invested in 16 years ago, according to The Times.As the most senior executive in the company, Coupe was required to attend trial to face claims that last July he tried to seize cheques associated with the collapsed business.Coupe was automatically convicted in absentia as he had not attended a court hearing last year. He will not have to return to Egypt to face authorities, however.The FTSE 100 company claimed that it was not notified of the hearing and that it does not anticipate it having any material operational or financial impact on the company."This relates to a historic commercial dispute in which Mike Coupe had no involvement and we strongly refute all the allegations," Sainsbury's said."Mike Coupe was not employed by Sainsbury's at the time of the original business deal in 2001 and has never met the complainant. We are contesting these groundless allegations."Barclays commented that the company was likely to be correct that this will have no material operational impacts on the company, "but nevertheless we expect Mike Coupe to strike Egypt from his list of potential holiday destinations for the foreseeable future".Sainsbury's paid £50m in 1999 in a joint venture with local retail entrepreneur Amr El Nasharty before withdrawing from Egypt in 2001.The company said El Nasharty bought out the joint-venture "with cheques that were dishonoured"."Mr El Nasharty is now claiming that Mike was in Egypt on 15 July 2014 and seized these cheques, which is an impossibility. Mike Coupe was in London carrying out his normal duties that day.""In September 2014 Mike Coupe was convicted, without notice of the proceedings against him and in his absence, in an Egyptian Court. We have taken all necessary steps to appeal against these groundless claims and will continue to do so."